Shillong, October 31: In a significant development, the $135 million Tata-Wistron deal was announced shortly after Prime Minister Narendra Modi inaugurated the ‘India Mobile Congress 2023’ in New Delhi on October 27.
As per IANS, this deal positions Tatas as the first Indian company to produce iconic Apple iPhones within India.
Industry experts view this announcement as a pivotal moment in Indian manufacturing, bolstering India’s status as the world’s second-largest smartphone producer. The Indian government’s initiatives, including the Production Linked Incentive (PLI) scheme for smartphone manufacturing, are set to catalyze the growth of manufacturing facilities, enabling Indian companies to compete with global electronics manufacturers primarily based in China.
Industry analysts have hailed this move, seeing the potential for a significant increase in domestic value addition. Currently, India’s domestic value addition for smartphones falls within the range of 18-24 percent.
Faisal Kawoosa, Chief Analyst at Techarc, a technology ecosystem research firm, commented, “Tata is now strongly positioned to take a solutions approach for designing, developing, and manufacturing electronics products in India.”
The Tata-Wistron deal reflects a strategic choice to acquire an operational facility from Wistron, allowing for swift expansion of the Narasapura manufacturing facility near Bengaluru. Several Indian manufacturers involved in supplying machinery can be integrated into the process, reducing dependence on global supply chains.
The production of iPhone 15 Plus, iPhone 12, and iPhone SE (second generation) currently takes place at Wistron’s Karnataka factory, which Tatas will take over.
Tarun Pathak, Research Director at Counterpoint, emphasized the seriousness of Tata’s semiconductor ambitions, particularly in the context of India’s digital goals. He highlighted the potential for Tata to leverage semiconductor strength in their electric vehicle (EV) business and align their chips with Apple in the future.
The ‘Make in India’ initiative in the technology sector gained global recognition, with the Indian Space Research Organisation (ISRO) sourcing components from various Indian firms and academic institutions for its successful Chandrayaan-3 mission.
Contract manufacturers play a pivotal role in creating value, generating employment, and contributing to the economy, as emphasized by Minister of State for Electronics and IT, Rajeev Chandrasekhar. As these manufacturers expand, they are likely to attract component suppliers, potentially leading to the establishment of ancillary factories in India.
Amid escalating US-China tensions, India stands out as a potential hub for production, thanks to its substantial domestic market and skilled workforce. This development reflects the growing strength of the ‘Make in India’ initiative.