An Indian enterprise producing iPhones would be a huge boost for the nation’s campaign to compete with China.
In order to build an electronics manufacturing joint venture in India and assemble iPhones there, Tata Group is in discussions with a Taiwanese supplier to Apple Inc.
According to those with direct knowledge of the negotiations, Tata aims to leverage Wistron Corp.’s strengths in product development, supply chain management, and assembly in order to become a major player in the technology manufacturing industry. If the agreement is successful, Tata might become the first Indian business to manufacture iPhones, which are now primarily put together in China and India by Taiwanese manufacturing behemoths like Wistron and Foxconn Technology Group.
The country’s efforts to compete with China, whose dominance in electronics manufacturing has been threatened by sweeping Covid lockdowns and political problems with the US, would receive a huge boost from an Indian company producing iPhones. It might also convince other major global electronics manufacturers to think about doing their assembly in India in order to lessen their dependency on China at a time when geopolitical dangers are rising.
The persons, who not to be identified because the discussions are confidential, said that the deal’s structure and other specifics, including shareholdings, had not yet been decided. According to one of the sources, the idea may involve Tata purchasing shares in Wistron’s Indian operations or the establishment of a new assembly facility by the parties involved. They could also use both of those manoeuvres, the source claimed.
It wasn’t immediately clear if Apple was aware of the talks, which come at a time the US tech giant is looking to diversify more production away from China and deepen its supply chain in India. Apple is known to work with local companies in regions where it sets up manufacturing bases — but assembling iPhones is a complicated task that entails meeting the US company’s tight deadlines and quality controls.
