Tata Group is gearing up to establish one of India’s largest iPhone assembly plants, aligning with Apple Inc.’s strategy to expand manufacturing operations within the country. The proposed factory, reportedly planned for Hosur in Tamil Nadu, aims to host around 20 assembly lines and employ approximately 50,000 workers within two years, as per sources familiar with the matter.
This strategic move is part of Apple’s broader initiative to diversify its supply chain away from China. Tata’s forthcoming plant would augment Apple’s efforts to localize production, complementing their existing partnership. Apple has been gradually expanding its manufacturing footprint across various countries including India, Thailand, Malaysia, among others.
Neither Apple nor Tata representatives have provided official comments on the matter.
Tata has been actively strengthening its association with Apple, with plans to bolster its presence in the technology sector. Apart from ramping up production at its Hosur facility, which currently manufactures iPhone enclosures, Tata aims to introduce 100 retail stores specifically catering to Apple products. Concurrently, Apple has already launched two stores in India and is eyeing three more.
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Under Prime Minister Narendra Modi’s production-linked incentives, major Apple suppliers like Foxconn and Pegatron have accelerated their operations in India. This initiative has boosted Apple’s local iPhone production to over $7 billion in the last fiscal year, constituting about 7% of the device’s global production. Previously, China was the sole assembly hub for iPhones.
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Although this upcoming plant will be a substantial addition to iPhone manufacturing, it’s expected to be smaller than Foxconn’s massive facilities in China. The companies may seek further government subsidies to support the new factory, particularly as previous incentives are on the verge of expiring.
