Tata Group’s Milestone Acquisition of Wistron India

Tata Group's Milestone Acquisition of Wistron India

VoM News Desk | November 11, 2023 | 12:54 PM IST | Tech | Follow on Google News

Tata Group’s Milestone Acquisition of Wistron India

Tata Group’s Milestone Acquisition of Wistron India

The Tata Group, a prominent Indian tech conglomerate, has reportedly finalized its acquisition of Apple supplier Wistron India. This significant move brings Tata closer to becoming the first Indian company to assemble iPhone models in the country. The deal marks a major development in India’s technology manufacturing sector and highlights Tata’s expanding role in the global tech supply chain.

Details of the Acquisition

The acquisition process, which began discussions a year ago, involves Tata Group signing a binding share purchase agreement to acquire a 100 percent equity stake in Wistron India. This purchase, worth $750 million (approximately Rs. 6,250 crore), includes a payment of $125 million (roughly Rs. 1,040 crore) for Wistron’s assembly lines in India. The deal was made with Singapore-based SMS Infocomm and Wistron Hong Kong.

Impact on iPhone Assembly in India

Tata Group was already producing components for Apple’s smartphones in Tamil Nadu. With the acquisition of Wistron India, Tata will now expand its capabilities to fully assemble iPhones, joining other Apple suppliers like Foxconn and Pegatron, which currently assemble various iPhone models, including the iPhone 15 and iPhone 14, in India. This development signifies Tata’s transition to a more integral role in Apple’s manufacturing process and positions it as the first Indian firm to assemble iPhones domestically.

Shift in Apple’s Global Production Strategy

This acquisition comes amid predictions from TF Securities International analyst Ming-Chi Kuo about significant changes in Apple’s production strategy. Kuo anticipates a considerable reduction in Apple’s production scale in China next year, with a concurrent increase in the percentage of iPhone units manufactured in India and shipped globally. This figure is expected to rise from 14 percent to between 20 to 25 percent by 2024.

Future Developments for iPhone Production

Kuo also suggests that the development of the iPhone 17, following the anticipated iPhone 16, is likely to occur outside China for the first time. The new product introduction (NPI) process for the iPhone 17 is expected to start in India during the second half of 2024. Given Apple’s annual release cycle, the iPhone 16 and iPhone 17 series are projected for release in 2024 and 2025, respectively.

This takeover by Tata Group not only emphasizes the growing prominence of India in the global tech manufacturing landscape but also reflects a strategic shift in Apple’s production and supply chain diversification

VoM News Desk

VoM News is an online web portal in jammu Kashmir offers regional, National & global news.