Tata Group is gearing up to construct a massive iPhone assembly plant in Hosur, Tamil Nadu, aligning with Apple’s strategy to expand manufacturing in India.
The facility is expected to have 20 assembly lines, employing around 50,000 workers in the next two years and becoming operational in 12–18 months.
Apple’s Localization Strategy
The new plant aims to strengthen Apple’s efforts to localize its supply chain and enhance collaboration with Tata. Currently, Tata oversees an iPhone manufacturing unit from Wistron Corp. in Karnataka, India, reflecting Apple’s diversification beyond China.
Apple and its suppliers plan to manufacture over 50 million iPhones annually in India over the next two to three years, with additional units in the following period. This aligns with Tata’s proactive approach to expand operations, including iPhone enclosure production and plans for 100 Apple-dedicated retail outlets.
Government Incentives and Future Plans
Prime Minister Narendra Modi’s production-linked incentives (PLIs) have encouraged key Apple suppliers like Foxconn and Pegatron to increase their presence in India. This has resulted in significant iPhone assembly, surpassing $7 billion in the previous fiscal year, capturing around 7 percent of the global production share.
The new plant, while smaller than Foxconn’s hubs in China, is expected to seek government subsidies for its establishment and growth. This move comes as previous incentives are set to expire, marking a significant step in Apple and Tata’s strategic partnership.