New Delhi: Tata Electronics is now grabbing headlines for manufacturing iPhones in India, industry experts said on Monday, with their ambitions on semiconductors and EVs, for the Tata group to gain expertise in manufacturing high-end iPhones in the country. It only makes sense. ,
Currently, the iPhone 12 and iPhone SE (2nd generation) are being manufactured/assembled at Taiwan-based iPhone maker Wistron’s Karnataka factory, which Tata Electronics is set to take over soon.
Once the final acquisition is done, the facility is likely to manufacture new Apple products which could include the upcoming iPhone series.
According to Prabhu Ram, Head, Industry Intelligence Group, CMR, “With the entry of new make-in-India potentially mid-range iPhone 15 series, the Tata group will make a modest start in this new partnership.”
“We expect a remarkable growth trajectory for the Tata group in the coming years as they gain expertise and experience in manufacturing high-end iPhones,” he told IANS.
In the coming years, the Tata group has the potential to consolidate its position as a major player in the iPhone manufacturing ecosystem.
Wistron’s factory in Karnataka, which employs around 12,000 people, accounts for a large part of its business in the country.
As per reports, Wistron will soon shut down its operations and is “likely to approach the National Company Law Tribunal and the Registrar of Companies to dissolve its operations in India”.
Meanwhile, according to sources, the manufacturing/assembly of the iPhone 13 and 14 in the country will continue at Foxconn’s Sriperumbudur facility on the outskirts of Chennai.
As iPhone consumption grows in the country, Apple needs more suppliers to ramp up production here, as it aims to move a significant share of manufacturing from China to countries such as India and Vietnam.
According to Counterpoint Research, ‘Make in India’ shipments from Apple grew by 65 per cent (on-year) by volume and 162 per cent by value, taking the brand’s value share to 25 per cent in 2022 from 12 per cent in 2021 . ,
According to senior research analyst Prachir Singh, Apple’s EMS (Electronics Manufacturing Services) partners Foxconn Hon Hai and Wistron were the fastest growing manufacturers in the top 10 in Q4 2022 and “growth was also fueled by increased exports from Apple”.
Overall, iPhone exports from the country crossed $5 billion (over Rs 40,000 crore) in FY23.
Apple posted a quarterly record in India in the January-March period and posted strong double-digit year-on-year growth, according to the company’s CEO Tim Cook, who was in India last month to open the first branded retail store in Mumbai. and New Delhi.
Tarun Pathak, director of research at Counterpoint, told IANS that Tata’s semiconductor ambitions are serious and come at a very crucial juncture amid India’s digital goals.
“First, they can leverage their semiconductor strength in their EV business and second, their chips may be tied up with Apple’s in the future and the learning curve for them will be very steep,” Pathak told IANS.
Third, the government policy will help them in OST and ATMP and boost their semiconductor ambitions.
Outsourced Semiconductor Assembly and Test (OST), also known as Assembly, Testing, Marking and Packaging (ATMP) units, play a vital role in semiconductor manufacturing.
“Tata is known for their diversified business and now that everything is connected and semiconductors are their key component, it all makes perfect sense for them to make high-end iPhones,” Pathak said.