Tata, India’s top conglomerate, nears iPhone factory takeover from Taiwan’s Wistron
- The Indian company is looking to complete its purchase of an iPhone factory from Taiwanese manufacturer Wistron by the end of March, sources say
- Apple is seeking to reduce its dependence on China, where supply chain snarls and pandemic restrictions have disrupted device production
Tata Group is close to taking over a major plant in southern India in a deal that would give the country its first home-grown iPhone maker.
The airline-to-software conglomerate has been in talks with the factory’s owner, Taiwan’s Wistron, for months, and is looking to complete the purchase by the end of March, according to two people familiar with the process. The two firms discussed various potential tie-ups but talks have now centred on Tata taking a majority of a joint venture, the people said.
Tata is set to oversee the main manufacturing operation, with support from Wistron, the people said, asking not to be named because the plans are not public.
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The Indian conglomerate aims to complete a due diligence process by March 31 so that its Tata Electronics arm can formally take over Wistron’s position in a programme that gives it government incentives, one of the people said. The next cycle of incentives will begin from April 1, which marks the start of India’s financial year.
The acquisition could value Wistron’s only iPhone manufacturing operation in India at more than US$600 million if the Taiwanese company meets the requirements to receive the expected incentives for the current financial year, one of the people said.
A Tata representative declined to comment. Wistron and Apple did not respond to requests for comment.
