Tata in talks with Wistron to assemble iPhones in India: Report

India’s noted industrialist group Tata is in talks with Taiwanese Wistron Corp to set up an electronics manufacturing plant in India, according to a Bloomberg report.

The plant, to be set up on a joint venture mode, is expected to assemble Apple iPhones in India as Tata, a salt-to-software conglomerate, forays into yet another sector, tapping the expertise of Wistron, Apple supplier, in product development, supply chain and assembly.

The venture, if successful, would make Tata the first Indian company to make iPhones apart from Taiwanese manufacturing giants like Wistron and Foxconn Technology Group in China and India.

The tie-up could come as a challenge to China which has been dominating the electronics manufacturing sector, but is not unchallengable. Tata could take advantage of the huge surge in demand created by the Covid-19 pandemic which jeopardized China’s manufacturing due to the repeated lockdowns.

This could also encourage other major electronics brands to consider assembly in India to reduce reliance on China amid rising geopolitical risks.

However, everything is in early stages as talks are still on and many of the details, including shareholding patterns are yet to be finalised.

Also read: Apple iPhone 14 to be made in India from November: Report

The Bloomberg report, quoting an unnamed source, said that Tata could buy equity in Wistron’s India operations or the companies could build a new assembly plant.

Apple which is looking to diversify its production away from China in the wake of the Russia-Ukraine war and sanctions imposed on Russia, is also planning to expand its supply chain in India.

Tatas could go on to build as much as five times from what Wistron currently builds in India, the source was quoted as saying. It would also look to get a share of Wistron’s manufacturing business beyond smartphones.

Tata Group Chairman Natarajan Chandrasekaran has been pushing for electronics and high-tech manufacturing among its portfolio that includes software, retail, steel and cars.

Wistron in India, which is directly assembling iPhones in Karnataka, is currently reeling under losses and a tie-up with Tata could help it pull out of the abyss and expand its operations.