In a transformative development signaling Apple Inc.’s commitment to diversifying its manufacturing presence in South Asia, Tata Group has unveiled plans to build one of India’s largest iPhone assembly plants. The proposed facility, located in Hosur, Tamil Nadu, aims to be operational within the next 12 to 18 months, with a significant workforce and assembly lines.
The move underscores Apple’s strategy to localize its supply chain and reduce dependence on manufacturing in China. The partnership with Tata, which already owns an iPhone factory in Karnataka acquired from Wistron, marks a strategic step in this direction.
While the upcoming plant is expected to be mid-sized on a global scale, it could emerge as one of the largest in India. The facility in Hosur is projected to feature around 20 assembly lines, providing employment for up to 50,000 workers within two years.
In comparison to existing iPhone manufacturing facilities globally, the new plant will be notably smaller but remains a significant leap for Apple’s operations in India. The move reflects the ongoing trend of major tech companies seeking to diversify their manufacturing bases.
Tata Group’s collaboration with Apple extends beyond iPhone assemblies. The conglomerate is ramping up hiring at its existing facility, focusing on the production of iPhone enclosures or metal casings. Additionally, Tata has ambitious plans to launch 100 retail stores exclusively dedicated to Apple products, further enhancing the market presence of both companies in the region.
Recent reports indicate Tata’s intent to expand its iPhone-casing factory in Hosur, doubling its size to cover 500 acres of land and providing jobs for over 15,000 people. The expanded facility could potentially employ a workforce of 28,000, contributing significantly to local employment and economic growth.
To support this ambitious venture, Apple and Tata are likely to seek government subsidies, especially as existing state-backed financial incentives are set to expire. The government’s introduction of production-linked subsidies has encouraged major players like Apple to expand their operations in India.
In the previous fiscal year, Apple assembled over $7 billion worth of iPhones in India, comprising about 7% of the device’s global production. The collaboration between Tata Group and Apple not only reflects a significant move in reshaping India’s role in global electronics manufacturing but also signals the growing importance of South Asia in Apple’s supply chain strategy.
As this partnership unfolds, it holds the potential to redefine the technological landscape in the region, creating new opportunities for employment and economic growth. The construction of the iPhone assembly plant in Hosur is not just a factory; it’s a testament to the evolving dynamics of global tech giants and their commitment to fostering growth in emerging markets.
