Tata Group Plans Construction of India's Largest iPhone Assembly Plant in Tamil Nadu

Tata Group is preparing to construct an extensive iPhone assembly plant in Hosur, Tamil Nadu, in line with Apple's strategy to broaden its manufacturing presence in India. Anticipated to feature 20 assembly lines, the facility is poised to employ approximately 50,000 workers within the next two years and should become operational in the next 12 to 18 months.

Apple's Focus on Localizing Operations -

The objective of the new plant is to fortify Apple's initiatives to localize its supply chain and enhance collaboration with Tata. Currently overseeing an iPhone manufacturing unit by Wistron Corp. in Karnataka, India, Tata's involvement highlights Apple's shift away from reliance on manufacturing in China.

Apple and its suppliers have ambitious plans to produce over 50 million iPhones annually in India over the next two to three years, with additional units in subsequent periods. This aligns with Tata's proactive expansion, encompassing iPhone enclosure production and the establishment of 100 Apple-dedicated retail outlets.

Government Incentives and Forward Plans -

Prime Minister Narendra Modi's production-linked incentives (PLIs) have spurred key Apple suppliers like Foxconn and Pegatron to increase their footprint in India. This has led to substantial iPhone assembly, surpassing $7 billion in the previous fiscal year and capturing around 7 percent of the global production share.

While smaller than Foxconn's Chinese hubs, the new plant is expected to seek government subsidies for its establishment and growth. This move coincides with the expiration of previous incentives, marking a significant milestone in the strategic partnership between Apple and Tata.

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