Wistron's board has approved the sale of Wistron InfoComm Manufacturing (India) Private Ltd to Tata for $125 million, the Taiwanese electronics maker said in a statement on Friday, Oct. 27, according to a Bloomberg report. The unit operates an iPhone assembly plant near Bengaluru. – said the person involved in the case.
IT Minister Rajeev Chandrasekhar congratulated the Tata Group for the acquisition. “PM @narendramodi Ji's visionary PLI scheme has already made India a trusted and major hub for smartphone manufacturing and exports. Now just two and a half years down the line, @TataCompanies will now start manufacturing iPhones from India for the domestic and global markets. Congratulations to the Tata team at Wistron take over operations.
Thanks @Wistron for your contribution and well done Apple Leading Indian companies in building a global supply chain from India.
@GoI_MeitY fully supports the growth of global Indian electronics companies which in turn will support global electronics brands who want to make India their trusted manufacturing and talent partner and realize the Prime Ministers aim to make India a global electronics powerhouse 🇮🇳💪. Chandrasekhar at X, formerly Twitter.
Tata Group is understood to have been in talks for more than a year to take over the plant as it seeks to forge closer ties with Apple Inc. Wistron is one of the three Taiwanese iPhone manufacturers in India, along with Foxconn and Pegatron. Pegatron has reportedly sought to diversify its business beyond thin-margin iPhone manufacturing into areas such as servers and has agreed to sell its iPhone manufacturing business in China to a rival in 2020.
Once the deal is approved by both parties, the companies will seek regulatory approval, Wistron said in a statement.
Tata has also taken other steps to grow its business with Apple. It has ramped up hiring at its factory in Hosur, near Bengaluru, where it makes iPhone components. This factory sits on several hundred acres of land where Tata can add iPhone production lines in the coming years. Tata also announced that it will open 100 Apple stores in the country of 1.4 billion.