Taiwanese Apple contract manufacturer Wistron Corp has finalized the sale of its plant in Karnataka to Tata Group, paving the way for the Indian conglomerate to become the first domestic company to manufacture iPhones.
Wistron announced in a statement that the transaction price is tentatively estimated at $125 million. The company's board approved the sale of its 100% indirect stake in Wistron InfoComm Manufacturing (India) to Tata Electronics. The agreement will be signed by Wistron's subsidiaries, SMS InfoComm (Singapore) and Wistron Hong Kong.
Within just two and a half years, Tata Companies will start manufacturing iPhones in India for both domestic and global markets, said Minister of State for Electronics and IT Rajeev Chandrasekhar in a post on X. Wistron's subsidiary, SMS InfoComm (Singapore), will convert $130.26 million of debt to Wistron InfoComm Manufacturing into equity as part of the deal.
Wistron, one of Apple's three contract manufacturers in India, employs over 10,000 workers at its facility and is a participant in the smartphone production-linked incentive (PLI) scheme. The PLI benefits will be transferred to Tata Group when it acquires the plant.
Wistron will remain a contract manufacturer for iPhones globally and will continue to handle repair services in India. Tata Group will now take over Wistron's commitment to ship at least $1.8 billion worth of iPhones from the factory in the current financial year. According to industry estimates, Wistron exported nearly $500 million worth of iPhones from India in the April-June quarter.
Apple, keen to reduce its reliance on China, has partnered with Tata Group to manufacture iPhones in India. This move is expected to lead to a significant shift of Apple's manufacturing base to India. According to industry estimates, Wistron exported nearly $500 million worth of iPhones from India in the April-June quarter.
Tata Group has also been a major beneficiary of the Scheme for the Promotion of Manufacturing of Electronic Components and Semiconductors.