The Tata Group has signed a binding share purchase agreement with SMS InfoComm (Singapore) and Wistron Hong Kong Limited to acquire 100% equity stake in Wistron Infocomm Manufacturing (India), enabling the Tata Group to officially join the Apple supply chain as an iPhone assembler."Signing of the Share Purchase Agreement to acquire Wistron InfoComm Manufacturing (India) Private Limited is an important milestone for us. The EMS (Electronic Manufacturing Services) industry in India is poised for growth given the strong support from the Government, and we are happy to be participating in this growth story,” Dr Randhir Thakur, CEO and Managing Director of Tata Electronics said in a statement.“We are focused on strengthening our capabilities in the manufacturing sector. I thank the entire Wistron team for their cooperation throughout this process,” he added.The Tata Group unveiled the plan to acquire Wistron India officially on October 27, announcing it would pay $125 million for 100% equity stake for the company’s assembly lines. ET reported on Thursday that the deal is worth a total $750 million inclusive of a $550-million inter-corporate loan given by the parent to Wistron India.The Tata Group entered the iPhone supply chain with a casings facility in Hosur, Tamil Nadu, starting with making a semi-finished iPhone SE model in India.With the acquisition of the Wistron unit, the Tata Group will be able to move into end-to-end assembling of iPhones in India, becoming the first Indian company to join the ranks of Foxconn, Pegatron, Luxshare and Wistron in making iPhones. 105085345According to noted Apple analyst Ming Chi Kuo, Tata Electronics, along with Foxconn and Pegatron are expected to start the introductory manufacturing process of the iPhone 17 (due to launch in 2025) as early as the second half of 2024, marking a significant mileston in Apple’s efforts in diversifying its supply chain.The Wistron purchase is expected to spur the next cycle of investments in the Indian electronics manufacturing ecosystem and signals the maturing of the country's contract manufacturing companies, minister of state for electronics and information technology Rajeev Chandrasekhar told ET last week."I think Tata's entry definitely signals that the Indian EMS (electronic manufacturing service) has (now) a giant Indian company which does manufacturing for global brands (in the) present and is maturing now," he said.Wistron currently has four assembly lines for iPhone production. A facility in Peenya, Bengaluru, is out of commission, while a third is used for the repair of Apple products. The company had been about to open another manufacturing facility in Kolar by the end of November, with production beginning in January 2024."The Wistron acquisition will help Tata move up the Apple value chain," said a telecom hardware industry executive on condition of anonymity. "With Wistron's existing knowhow, Tata will now be the first homegrown vendor to make iPhones. At the Hosur plant, the Tatas were primarily focussing on iPhone casings with only 15-20% of consumables locally sourced. This will be a serious leg-up."According to a report by JPMorgan, Apple plans to shift 25% of its iPhone production to India by 2025 in a bid to diversify its manufacturing base, which is currently concentrated in China.
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