Winning Bizness Desk
Mumbai. In a bid to continue its expanding wings, the Tata Group is in talks with Taiwanese supplier Apple Inc Wistron Corp to set up an electronics manufacturing joint venture in India. If the reports surfacing in the media are to be believed, this joint venture will assemble the iPhone in India as Tata wants to become a force in technology manufacturing through this. If the deal is successful, it would make Tata the first Indian company to manufacture an iPhone. Currently, Wistron and Foxconn assemble iPhones in India and China. Notably, Apple started manufacturing iPhones in India in 2017 with the iPhone SE.
Tata could buy equity in Wistron
The structure and details of the deal such as shareholding are yet to be finalised. One of the people familiar with the matter said Tata could buy equity in Wistron's India operation for iPhone manufacturing or the companies could set up a new assembly plant. Both of these things can also be executed. Apple is known to work with local companies in areas where it sets up manufacturing bases. Most of the iPhones are produced in China. Apple supplies parts to its contract manufacturers such as Foxconn, Wistron and Pegatron, and those manufacturers then assemble it to make the iPhone.
To compete with China
If the Indian company starts making iPhones, then it will give a tough competition to China. China's dominance in electronics manufacturing has been threatened by the Covid-induced lockdown and political tensions with the US. Apple does not want to depend on China alone for iPhone manufacturing to reduce its dependence on China at a time of rising geopolitical risks.
Aim to enhance manufacturing by 5 times
The new venture aims to increase the number of Wistron-made iPhones in India by five times. If this partnership happens, then it will not be limited to iPhone manufacturing only. This manufacturing business will be taken even beyond smartphones. Tata Group Chairman Natarajan Chandrasekaran has said that electronics and hi-tech manufacturing are key focus areas for the company.
