It appears that the Tata Group is fully prepared to finalize the acquisition of Wistron’s iPhone facility located in Bengaluru before the month’s end.
Tata Group Taking Over Wistron’s iPhone Plant
The significance of this development lies in the fact that India would have its inaugural in-house production line for Apple products.
In light of this development, insiders report that the Indian conglomerate has already initiated structural modifications at the facility.
It is also anticipated that approximately 2,000 factory workers may be released as part of the acquisition, along with an attrition of 400 mid-level executives at the Bengaluru iPhone plant.
Additionally, several senior-level executives have either already been dismissed or are currently in the process of departing.
How Does This Help?
Regarding Wistron’s Indian facility, it currently operates almost eight production lines that are responsible for manufacturing iPhone 12 and iPhone 14 models.
There is speculation that following the acquisition, Tata may begin manufacturing the iPhone 15 at this plant.
It is worth noting that Wistron’s Bengaluru plant was the sole production facility for Apple products in India under the Taiwanese electronics company.
By acquiring Wistron, Tata will be able to fully exit the iPhone business in India, which is valued at approximately $600 million.
For those who are unaware, this factory spans across 2.2 million square feet and is situated just on the outskirts of Bengaluru.
Why Would This Happen?
These modifications are taking place at a time when Apple is increasingly interested in India’s manufacturing capabilities, particularly as the company looks to move away from reliance on Chinese production.
It seems that in light of the geopolitical tensions between the United States and China, Apple intends to relocate 25 percent of its global production to India.
This shift in focus has been announced by the Cupertino, California-based tech giant.
Currently, there are three Taiwanese firms – Wistron, Pegatron, and Foxconn – that are involved in the assembly of Apple products in India.
In the past, Wistron had indicated its intention to exit India’s iPhone business as early as 2020.
Meanwhile, Foxconn and Pegatron have recently expanded their production capacity in India.
Tata has taken various measures to expand its business with Apple, including ramping up recruitment at its Hosur plant in Tamil Nadu, which is involved in the manufacturing of iPhone components.
Given that the Indian government is aggressively pursuing Apple to relocate production to India, the Tata Group sees this as a significant opportunity to enter the manufacturing sector for Apple products.
There are rumors among industry insiders that Tata may acquire Pegatron’s iPhone production facilities following the completion of the Wistron acquisition.
