The gap between China and India is said to have shrunk from two months to six weeks. The Tata Group is reportedly in talks with Taiwan-based Wistron Corp to join the ranks of iPhone makers in India, as Apple looks to expand its Indian manufacturing unit. If the talks reach an agreement, Wistron, an Apple supplier, will establish an electronics manufacturing joint venture in the country with the Tata Group Company.
Background
Apple has been making slow progress toward reducing its reliance on China as a manufacturing center for some time, and the initiative has become more pressing as the threat of disruption in both China and Taiwan has grown more real.
Nancy Pelosi, the speaker of the US House of Representatives, visited Taiwan to show US support at a time when there are growing fears of a Chinese invasion. It was intended to send a message to Beijing that the US is serious about its legal commitment to assist Taiwan in defending itself against any military attack by China.
Could this deal trigger the India- China Relations
As the talks progress and the agreement is implemented, Tata Group company could become the first Indian company to manufacture Apple iPhones, capturing a market dominated by Taiwanese manufacturing giants such as Wistron and Foxconn Technology Group in China and India.
An Indian company producing iPhones could be a huge boost to the country’s efforts to challenge China, whose dominance in electronics manufacturing has been threatened by rolling Covid lockdowns and political tensions with the US. It may also persuade other international electronics manufacturers to consider holding a meeting in India in order to reduce their reliance on China at a time of growing volatility.
The Way Forward
The new venture aims to increase the number of iPhones produced by Wistron in India by up to fivefold in the future. According to sources, the Tatas group company may purchase a stake in Wistron’s manufacturing business in addition to smartphones.
Tata Sons chairman N Chandrasekaran has stated that electronics and high-tech manufacturing will be key focus areas for the company in the future. The most recent report is consistent with Chandrasekaran’s plans.
