Tata Electronics becomes India?s 1st iphone manufacturer
Technology

Tata Electronics becomes India?s 1st iphone manufacturer

Tata Electronics is on the verge of acquiring Wistron Corporation?s entire indirect stake in its Indian venture for a substantial sum of $125 million. This deal is poised to elevate Tata Electronics into an exclusive global group of iPhone assemblers, marking a significant milestone as the first indigenous iPhone manufacturer in India.

The board of Wistron Corporation, the third-largest player in electronics manufacturing services worldwide, recently greenlit a proposal from its two subsidiaries, co-owners of the Indian venture Wistron InfoComm Manufacturing (India). This approval paves the way for Tata Electronics to acquire the venture through a share purchase agreement. Notably, the Indian venture oversees the iPhone manufacturing plant situated in Narasapura, near Bengaluru.

Simultaneously, one of Wistron Corp's subsidiaries, SMS InfoComm (Singapore) Pte, has proposed converting a loan of $130.26 million, inclusive of accrued interest, into equity within the Indian venture. Although the conversion price remains undisclosed, there is potential for Wistron to retain a minority stake in the Indian unit.

Post-acquisition, Tata Electronics will join the elite ranks of Apple Inc?s select group of global vendors responsible for iPhone assembly. Presently, this exclusive list includes Wistron, as well as Taiwanese companies Foxconn and Pegatron, along with the Chinese firm Luxshare.

The significance of this agreement cannot be overstated, especially considering that 7% of iPhone production has already shifted from China to India. The goal is to increase this figure to approximately 18-20% by FY26.

Ashwani Vaishnaw, the Union Electronics and IT Minister, commented on this development, stating, ?It is another major step in mobile manufacturing. With this acquisition, mobile manufacturing will be further strengthened in the country.? Tata Electronics refrained from providing any official comments.

Wistron has played a crucial role in iPhone assembly within Karnataka, India, alongside Foxconn and Pegatron. The company is entitled to incentives under the production-linked incentive scheme for mobile devices. Wistron?s contributions to iPhone exports from India are noteworthy, making it the second-largest exporter after Foxconn. In FY 23, it generated revenue of $1.98 billion, accounting for 36% of iPhone exports from the country. Despite challenges, including labour issues and protests over alleged unpaid wages and long working hours, Wistron has invested significantly in its Indian plant, employing over 12,000 workers with plans to triple this number.

Tata Electronics is on the verge of acquiring Wistron Corporation?s entire indirect stake in its Indian venture for a substantial sum of $125 million. This deal is poised to elevate Tata Electronics into an exclusive global group of iPhone assemblers, marking a significant milestone as the first indigenous iPhone manufacturer in India. The board of Wistron Corporation, the third-largest player in electronics manufacturing services worldwide, recently greenlit a proposal from its two subsidiaries, co-owners of the Indian venture Wistron InfoComm Manufacturing (India). This approval paves the way for Tata Electronics to acquire the venture through a share purchase agreement. Notably, the Indian venture oversees the iPhone manufacturing plant situated in Narasapura, near Bengaluru. Simultaneously, one of Wistron Corp's subsidiaries, SMS InfoComm (Singapore) Pte, has proposed converting a loan of $130.26 million, inclusive of accrued interest, into equity within the Indian venture. Although the conversion price remains undisclosed, there is potential for Wistron to retain a minority stake in the Indian unit. Post-acquisition, Tata Electronics will join the elite ranks of Apple Inc?s select group of global vendors responsible for iPhone assembly. Presently, this exclusive list includes Wistron, as well as Taiwanese companies Foxconn and Pegatron, along with the Chinese firm Luxshare. The significance of this agreement cannot be overstated, especially considering that 7% of iPhone production has already shifted from China to India. The goal is to increase this figure to approximately 18-20% by FY26. Ashwani Vaishnaw, the Union Electronics and IT Minister, commented on this development, stating, ?It is another major step in mobile manufacturing. With this acquisition, mobile manufacturing will be further strengthened in the country.? Tata Electronics refrained from providing any official comments. Wistron has played a crucial role in iPhone assembly within Karnataka, India, alongside Foxconn and Pegatron. The company is entitled to incentives under the production-linked incentive scheme for mobile devices. Wistron?s contributions to iPhone exports from India are noteworthy, making it the second-largest exporter after Foxconn. In FY 23, it generated revenue of $1.98 billion, accounting for 36% of iPhone exports from the country. Despite challenges, including labour issues and protests over alleged unpaid wages and long working hours, Wistron has invested significantly in its Indian plant, employing over 12,000 workers with plans to triple this number.

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