Tata Group Close to Acquiring iPhone Plant in Bangalore from Wistron

Whilst it has been on the cards for months, ever since Apple CEO Tim Cook met Tata chairman N Chandrasekharan during his visit to India in April, Tata is finally nearing a deal to acquire an iPhone manufacturing facility in India from Wistron. According to reports, Tata is acquiring Wistron’s plant near Bangalore as early as August in an agreement valued at over $600 million. This comes as Taiwanese manufacturing giant Foxconn has pulled out of a joint semiconductor venture with Vedanta Group.

For the first time, an Indian company will be in charge of making iPhones, the world’s most coveted consumer electronics product. Apple is also in discussions about another facility in Tamil Nadu with Tata. Wistron has sought to divest from its investment in iPhone manufacturing due to regulatory issues and poor returns.

Tata aims to expand its technology business and will enter the semiconductor industry. It has hired Intel veteran Randhir Thakur, former head of Intel Foundry Services, to lead its semiconductor efforts. Gaining manufacturing capabilities will enable vertical integration. Long term, Tata aims not just to manufacture iPhones but also Apple Watches, AirPods and even smart TVs.

Apple will likely provide Tata substantial technical investment to help improve its abilities. While Tata has manufacturing experience, it is with inexpensive mobile phones, not sophisticated devices like iPhones.

Once finalised, the manufacturing plant could be operational as early as next year. Reports indicate Tata executives have already assumed control of the Wistron facility, merging human resources operations.

The goal is to support India’s “Make in India” initiative to establish India as a global hub for electronics manufacturing. U.S. chip maker Micron has already committed over $800 million for an assembly plant in Gujarat.

Neither Apple nor Tata have officially confirmed any deal or plans. Details must still be finalised, so a timeline for implementation remains unclear.

Also Read: India's Semiconductor Plans Hit as Foxconn Exits $19.5B Joint Venture