The 100% indirect ownership of Wistron InfoComm Manufacturing (India) Private Limited, which operates a plant in Kolar, close to Bengaluru, where the Apple iPhones were produced, will be purchased by Tata Electronics for $125 million.
The first Indian manufacturer to produce Apple’s iPhone in the nation is Tata Electronics. By REUTERS
According to Minister of State for Electronics and IT Rajeev Chandrasekhar, Tata Electronics will be the first company in India to produce Apple’s iPhones. He cited a statement from Taiwan-based Wistron, whose board approved a stake sale to the Tata group on Friday.
The 100% indirect ownership of Wistron InfoComm Manufacturing (India) Private Limited, which operates a plant in Kolar, close to Bengaluru, where the Apple phones were made, will be purchased by Tata Electronics for $125 million.
Tata Electronics will begin producing iPhones in India in approximately 2.5 years for both domestic and international markets. Kudos to the Tata team for assuming control of Wistron operations. In a post on X (previously Twitter), Chandrasekhar said, “Thank you, Wistron, for your contributions. Great going, Apple in building a global supply chain from India with Indian companies at its helm.”
The electronics manufacturer based in Taiwan released a statement stating that: “Wistron Corp held a Board of Directors meeting today and granted approval for its subsidiaries, Wistron Hong Kong Ltd and SMS InfoComm (Singapore) Pte Ltd, to sign the Share Purchase Agreement with Tata Electronics Pvt Ltd (TEPL) for the sale of its 100% indirect stake in Wistron InfoComm Manufacturing (India) Pvt Ltd (WMMI).”
The government’s Made in India initiative, which aims to draw foreign businesses to Indian factories, is boosted by the announcement that Samsung, Apple, and Google will also be making their flagship phones here.
At the ceremony, Ashwini Vaishnaw, the Minister of Electronics and Information Technology, told the media that about 80% of the equipment used in the 5G rollout is created in India. Additionally, he mentioned that 72 nations buy telecom equipment made and designed in India.
According to Vaishnaw, an investigation conducted by the India Semiconductor Mission revealed that a number of the most intricate chips in use today are created in India. “Our research revealed that there are roughly 1,20,000 engineers designing chips in India, contrary to our previous estimate of 50,000 people involved in the chip designing ecosystem,” he stated.
He stated, “IPR is close to 40–50% value addition in typical telecom equipment, so the design is very important.” Additionally, Vaishnaw stated that original intellectual property rights (IPR) and high-quality production with low costs are now priorities in Indian manufacturing.
“The semiconductor PLI has approved seven applications,” he declared.
He stated that the PLI program for IT gear was moving along quite nicely. The majority of people have located their desired manufacturing locations as well as their local partners. We will get the authorized list shortly.
He responded, “Entire complex manufacturing will have a complex value chain,” when asked if it was possible to fully cut ties with the Chinese supply chain. This industry’s intrinsic nature necessitates that the value chain remain interconnected, intricate, and intertwined. It implies that we have to continue honing our skills and cultivating our own ecosystem partners.
The head of Bharti Enterprises, Sunil Bharti Mittal, had earlier declared that the Mehsana, Gujarat, satellite network gateway site for OneWeb would be operational by the end of the month. With 648 satellites in Low Earth Orbit (LEO), OneWeb is a Low Earth Orbit (LEO) satellite provider that offers communication services separate from the regional terrestrial infrastructure.
In remote locations, satellite-based communication may be essential for connectivity. At the moment, telecom companies pay into the Universal Service Obligation Fund (USOF) a portion of their earnings in order to support the development of communication infrastructure in remote and rural areas. However, unlike satellite communication, terrestrial networks necessitate the construction of a substantial amount of physical infrastructure.
For Airtel, most use cases imagined for OneWeb are B2B. 80% of the applications are designed for defence purposes while others include providing connectivity in remote areas for education purposes.
Similar technology is used in Jio’s Jio SpaceFiber, which it also revealed. Elon Musk’s Starlink is the other big competitor attempting to establish a name for itself in India.
The government must first set aside spectrum for satellite connectivity before OpenWeb’s Gujarati website can function.
The Telecom Regulatory Authority of India is now doing a public consultation to determine the best way to distribute spectrum for space-based communication services. Spectrum may either be auctioned off or the government may allocate spectrum administratively.
Vaishnaw declined to comment on the best way for TRAI to handle this situation. “Let the TRAI consultation be carried out correctly. He stated, “We shouldn’t try to influence the entire TRAI process by making comments.”
FAQs
What made Tata decide to buy Wistron India?
Tata was the first Indian company to make iPhones, and it wanted to establish itself as a leader in the iPhone assembly market.
What is the effect of this acquisition on Apple’s supply chain?
By increasing its footprint in India and broadening its manufacturing network, the acquisition helps Apple potentially lessen its reliance on Chinese manufacture.
What financial considerations are involved in the $750 million deals?
As part of the agreement, Tata would purchase all of the ownership in Wistron India, with $125 million going toward the company’s assembly lines.
What is Ming-Chi Kuo’s outlook on the future of iPhone manufacturing?
According to Kuo, Apple’s manufacturing scale will change, with a notable rise in iPhones produced in India and a ground-breaking iPhone 17 development outside of China.
What effect is Tata’s entry into the iPhone manufacturing industry expected to have globally?
Tata’s arrival into the global iPhone production scene brings a distinct dynamic that complements Apple’s manufacturing location diversification plan.
