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An agreement between Tata Group and the supplier of Apple Inc. might be reached shortly—possibly as soon as August. According to a report by the news agency Bloomberg, the partnership will be the first time a local business engages in the production of iPhones.
After a year of negotiations, Wistron’s manufacturing in Karnataka will be taken over. According to the article, the takeover may be worth more than $600 million. More than 10,000 people are employed by the plant to assemble the newest iPhone 14 models.
In order to receive state-backed financial incentives, Wistron has agreed to export $1.8 billion worth of iPhones from the manufacturing in FY24. The corporation also intends to triple the number of employees at the plant by the following year. Wistron’s departure from the Indian iPhone market won’t stop Tata from keeping its promises.
Tata, Apple, and Wistron spokespeople all declined to comment on the latest development, according to the Bloomberg article.
Apple’s aspirations to expand technology manufacturing and diversify its product base beyond China are set to gain steam with the introduction of an Indian-made iPhone. In the first quarter, Wistron exported iPhones from India for around $500 million. The local operations of Pegatron Corp. and Foxconn Technology Group have also been expanded.
Progress in domestic manufacturing has been made since Prime Minister Narendra Modi set up government programmes such as lucrative financial incentives to increase production and employment. Apple has started diversifying away from China after the country was locked down in Covid and rising tensions between the US and China.
Indian iPhone production could influence other international electronics brands to think about producing in India in order to lessen their reliance on China.
The Tata Group, which sells everything from salt to IT services, has been trying to break into the electronics manufacturing and e-commerce industries recently. For the Tata family, both countries are relatively new.
At its facility in Tamil Nadu, it already produces iPhone chassis, which is the device’s metal frame. According to its Chairman, N Chandrasekaran, the Tatas also support plans for the production of semiconductors.
Source- NDTV
