Wistron to Sell iPhone Assembly Plant in India
Taiwan-based Wistron (3231.TT) is said to be in talks with India’s largest conglomerate Tata Group (pvt) to sell its 2.2m ft2 factory outside of Bangalore that it has used to assemble iPhones for Apple (AAPL). The deal, which is rumored to be worth ~$600m, would give Tata access to the Indian government’s next round of incentives, which begin in April. The plant employs over 10,000 workers and while ownership would pass to Tata if the deal is completed, Wistron would remain an iPhone service partner in India.
Tata has been working toward both increasing its technology exposure and its ties to Apple, having expanded operations at its component factory in Hosur, where it produces components for the iPhone, and committing to opening 100 Apple stores across India, the first of which opening this quarters. Tata is working toward assisting the India government’s plan to build out the country’s manufacturing capabilities to compete against China’s manufacturing dominance, which has been hindered by its stringent COVID-19 rules and other anti-China sentiment. The Wistron deal would move at least some iPhone assembly from Taiwanese assemblers to in-country production, although the majority of iPhone assembly in India is done by Foxconn and Pegatron (4938.TT). Wistron is selling the facility to further its transition away from low-margin assembly toward higher margin server-related manufacturing.
Tata has been working toward both increasing its technology exposure and its ties to Apple, having expanded operations at its component factory in Hosur, where it produces components for the iPhone, and committing to opening 100 Apple stores across India, the first of which opening this quarters. Tata is working toward assisting the India government’s plan to build out the country’s manufacturing capabilities to compete against China’s manufacturing dominance, which has been hindered by its stringent COVID-19 rules and other anti-China sentiment. The Wistron deal would move at least some iPhone assembly from Taiwanese assemblers to in-country production, although the majority of iPhone assembly in India is done by Foxconn and Pegatron (4938.TT). Wistron is selling the facility to further its transition away from low-margin assembly toward higher margin server-related manufacturing.
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