Tata and Apple Major Collaboration for iPhone Production in India

Tata Group in collaboration with Apple, is set to commence iPhone production in India for both domestic and global markets within the next two and a half years. This announcement made by India’s Electronics and Technology Minister, Rajeev Chandrasekhar marks a significant shift in Apple’s strategy. Previously the tech giant primarily sold iPhones manufactured in China. With this development, Tata Group will become India’s first indigenous iPhone producer.

To facilitate this endeavor, Tata Group has acquired the operations of Wistron Corp, an Apple supplier for approximately $125 million. Minister Chandrasekhar expressed his gratitude to Wistron for its efforts in establishing a global supply chain in India with Indian companies at the forefront.

This strategic move aligns with Prime Minister Narendra Modi’s incentives to bolster local manufacturing and Apple’s desire to diversify beyond China amidst trade tensions between Washington and Beijing. Mr. Chandrasekhar lauded the “Production Linked Incentive” (PLI) scheme introduced by PM Modi which aims to promote domestic manufacturing, generate employment and support exports across various sectors including electronics.

Earlier this year, Union Commerce and Industry Minister Piyush Goyal revealed that Apple had exported goods worth $5 billion from India in 2022. He also outlined the company’s goal to produce 25% of its global iPhone units in India over the next four to five years.

Tata Group’s acquisition of the Wistron Corp factory in Karnataka, India’s largest conglomerate signifies a year-long negotiation process. This 150-year-old conglomerate known for its diverse range of products and services, has ventured into electronic production and e-commerce in recent years. The company already manufactures iPhone chassis, the structural framework of the device at its expansive facility in Tamil Nadu.

In summary, this collaboration between Tata Group and Apple reflects India’s growing prominence in the production of iPhones and underscores a shift in Apple’s manufacturing strategy from China to India, fueled by government incentives and a focus on diversification.