Tata nears iPhone plant takeover to grow Apple supply role
Tata Group is close to taking over a major plant in southern India in a deal that would give the country its first homegrown iPhone maker.
The airline-to-software conglomerate has been in talks with the factory's owner, Taiwan's Wistron Corp., for months, and is looking to complete the purchase by the end of March, according to two people familiar with the process. The two firms discussed various potential tieups but talks have now centered on Tata taking a majority of a joint venture, the people said. Tata is set to oversee the main manufacturing operation, with support from Wistron, the people said, asking not to be named because the plans aren't public.
Apple Inc.'s iPhones are mainly assembled by Taiwanese manufacturing giants like Wistron and Foxconn Technology Group. Tata's deal would advance India's efforts to create local contenders to challenge China's dominance in electronics, which has been jeopardized by political tensions with the US and Covid-related hurdles.
The Indian conglomerate aims to complete a due diligence process by March 31 so that its Tata Electronics arm can formally take over Wistron's position in a program that gives it government incentives, one of the people said. The next cycle of incentives will begin from April 1, which marks the start of India's financial year.
The acquisition could value Wistron's only iPhone manufacturing operation in India at more than $600 million if the Taiwanese company meets the requirements to receive the expected incentives for the current financial year, one of the people said.
A Tata representative declined to comment. Wistron and Apple didn't respond to requests for comment.
“I am not directly involved in that, but it should be really good for India
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