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In a groundbreaking move, Tata Group, India's largest conglomerate, is on the verge of acquiring an Apple Inc. supplier's factory, making it the first Indian company to venture into iPhone assembly. The takeover of Wistron Corp.'s facility in Karnataka state, valued at over $600 million, marks the culmination of a year-long negotiation process.
This development, independently verified by CNBC-TV18, highlights Tata Group's strategic expansion into technology manufacturing. The move is set to boost Apple's efforts to diversify its product base and establish a stronger manufacturing presence in India.
Key Highlights:
Wistron Factory Acquisition: Tata Group's acquisition of the Wistron factory in southern Karnataka is nearing completion, pending resolution of certain issues. The facility, employing over 10,000 workers, currently assembles the latest iPhone 14 model. The deal signifies Tata Group's foray into iPhone production in India.
Financial Commitments and Incentives: Wistron has committed to exporting iPhones worth at least $1.8 billion from the factory by March 2024 to secure state-backed financial incentives. Additionally, it aimed to triple the workforce by next year. Tata Group intends to honor these commitments as Wistron exits the iPhone business in India.
Apple's Diversification Efforts: The addition of an Indian iPhone manufacturer strengthens Apple's endeavors to diversify its production beyond China. With Wistron, Foxconn, and Pegatron increasing their manufacturing operations in India, Apple aims to reduce its reliance on China and expand its presence in the South Asian nation.
Boosting India's Manufacturing Sector: An Indian company entering iPhone assembly is a significant milestone for Prime Minister Narendra Modi's campaign to challenge China's dominance as the global factory. It paves the way for other international electronics brands to consider manufacturing in India, reducing their dependence on China.
The imminent acquisition of Wistron's factory by Tata Group heralds a groundbreaking chapter in India's manufacturing landscape. As Tata Group enters the iPhone assembly business, it not only strengthens Apple's diversification strategy but also aligns with Prime Minister Modi's vision to boost domestic manufacturing. This development catalyzes global electronics brands to explore production opportunities in India, contributing to India's rise as a formidable technology manufacturing hub.
(The news piece is based on information from anonymous sources and has been independently verified by CNBC-TV18.)
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