Tata to Invest ₹6,000 Crore in New iPhone Plant in Tamil Nadu, Set to Be Operational by November 2024
News Mania Desk/Agnibeena Ghosh/19th August 2024
Tata Electronics is making a significant stride in the global electronics manufacturing sector with the announcement of a new iPhone assembly plant in Hosur, Tamil Nadu. This facility, set to become operational by November 2024, marks Tata’s fourth major investment in India’s rapidly expanding role in Apple’s global supply chain. The new plant is a crucial part of Apple’s strategy to diversify its manufacturing operations outside of China amid escalating geopolitical tensions between China and the United States.
The upcoming factory is located on a 250-acre site where Tata had previously established a components manufacturing unit three years ago. With a substantial investment of ₹6,000 crore, Tata is matching its earlier commitment to the components unit, signaling the company’s deepening involvement in Apple’s supply chain. This move follows Tata’s recent acquisition of a similar plant from the Taiwanese firm Wistron in Karnataka, further solidifying its position as a key player in Apple’s global production network.
The new Hosur plant is expected to be a major employer, creating significant job opportunities in the region. Tata plans to hire over 50,000 workers, with the assembly unit alone projected to provide jobs for 35,000 to 40,000 individuals, most of whom will be women. This makes it the largest iPhone manufacturing facility in India, reflecting Tata’s commitment to not only boosting its manufacturing capabilities but also contributing to local employment.
This expansion is part of a broader push by Apple to increase its production capacity in India, a country that has become increasingly important in the tech giant’s global supply chain. Apple first began producing iPhones in India four years ago and has since rapidly expanded its operations. Analysts predict that India’s contribution to Apple’s total iPhone shipments could rise significantly this year, potentially reaching 20-25% compared to 12-14% last year.
Apple’s manufacturing partners in India, including Tata, Pegatron, and Foxconn, play a central role in this expansion. Tata’s involvement is particularly noteworthy, as it underscores the company’s growing influence in Apple’s manufacturing ecosystem. This aligns with Apple’s goal of shifting 10% of its global iPhone production to India by 2025-26, leveraging the Indian government’s production-linked incentive (PLI) scheme to encourage domestic manufacturing.
The new Hosur plant is expected to play a critical role in achieving this objective, further enhancing India’s status as a key hub in Apple’s global manufacturing strategy. As Apple continues to diversify its production base, Tata’s investment not only strengthens its partnership with the tech giant but also elevates India’s profile as a major player in the global electronics manufacturing sector.
This development is a testament to India’s increasing significance in the global technology landscape. With Tata’s substantial investment and Apple’s strategic shift towards India, the country is poised to become a central player in the production of one of the world’s most iconic products, the iPhone. As the Hosur plant comes online, it will mark a new chapter in India’s rise as a powerhouse in the global electronics industry, further integrating the country into the global supply chain and creating opportunities for economic growth and technological advancement.
