India's Tata Group said to become Apple's fourth iPhone contract manufacturer, accelerating a shift of production outside China
Tata Group is set to become Apple's fourth iPhone contract manufacturer, following the industrial giant's acquisition of Taiwanese firm Wistron Corp's factory in southern India, according to research firm TrendForce, accelerating a shift of production outside China.
The Mumbai-based, cars-to-software conglomerate has received orders for the new iPhone 15 and iPhone 15 Plus models to be launched later this year, indicating that India will see the first wave of shipments for the new series, TrendForce said in a recent blog post, without elaborating.
"Following Apple's pattern, new suppliers receive smaller orders for lower-end models," the Taipei-based firm said.
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It predicted Tata's share of assembly orders from Apple for various iPhone models would amount to 5 per cent of total units in 2023, with Foxconn Technology Group, Pegatron Corp and Luxshare Precision Industry Co splitting the rest.
A private security guard stands at the entrance to Taiwanese firm Wistron Corp's iPhone factory at India's Narsapura industrial area in the southwestern state of Karnataka. Photo: Agence France-Presse alt=A private security guard stands at the entrance to Taiwanese firm Wistron Corp's iPhone factory at India's Narsapura industrial area in the southwestern state of Karnataka. Photo: Agence France-Presse>
Tata and Wistron did not immediately respond to a request for comment on Friday.
Landing iPhone supply orders has put Tata front and centre in the ongoing shift of Apple's manufacturing supply chain away from China.
"Due to geopolitical and pandemic [factors], Apple has been accelerating the diversification of its supply sources, with India being the most well-known case for such transfers," TrendForce said.
The risk of China losing its primary role in Apple's manufacturing supply chain has intensified after Foxconn, formally known as Hon Hai Precision Industry, faced severe disruptions at its manufacturing complex last year in the central city of Zhengzhou, home to the world's largest iPhone factory.
Tata completed its takeover of Wistron's iPhone manufacturing base in India - at the Narsapura industrial area in the southern state of Karnataka - at the end of last month, according to a report by DigiTimes.
Wistron's 2.2 million square-foot factory is located just over 50 kilometres (30 miles) east of Bangalore, capital and largest city of Karnataka.
Tata's acquisition covers all of the plant's eight iPhone assembly lines, as well as its 10,000 workers, including a couple of thousand engineers, according to a Bloomberg report in January. Wistron will continue as a service partner for iPhones in India.
It also marked Wistron's exit from the iPhone assembly business. The Taiwanese firm's operations there were hit last year by a violent rampage of workers over allegations of unpaid wages and exploitation. That incident prompted Apple to intervene and investigate whether Wistron flouted its supplier guidelines.
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