Indian company Tata is reportedly preparing to buy an iPhone manufacturing plant.
The plant is now owned by Taiwanese company Wistron, and the two companies are said to be working on a contract for the line by the end of March. Tata is now believed to be poised to acquire a majority stake in the joint venture between the two companies. It also oversees manufacturing.
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bloomberg (opens in new tab) Tata reports that the reason it wants to take over the factory by the end of March is simple.
“The Indian conglomerate aims to complete its due diligence process by March 31, and a government incentive program will allow its Tata Electronics division to formally take over Wistron’s position.” Bloomberg said. “The next cycle of incentives will begin on April 1, which marks the start of the Indian fiscal year.”
The news comes as Apple further diversifies its iPhone supply chain and reduces its reliance on companies and labor in China and Taiwan. Apple’s iPhone supply has taken a hit recently thanks to ongoing COVID-19 concerns in China, with workers rioting at one Foxconn factory as well. , Apple had to get involved. It didn’t help that this factory is the only one on the planet that assembles Apple’s best iPhone, the iPhone 14 Pro.
It’s not immediately clear how Tata’s ownership of this South Indian factory will affect Apple, but it’s not the only factory in the country. Wistron is just one of his three Taiwanese iPhone makers currently operating in India. Pegatron and Foxconn are among others. The factory is believed to employ as many as 10,000 workers in eight iPhone production lines.