Tata Group Plans Massive iPhone Plant in India to Boost Apple Manufacturing

8 Dec 2023 , 12:43 PM

Tata Group is set to establish one of India’s largest iPhone assembly plants, aligning with Apple’s push to boost manufacturing in the country. The proposed facility in Hosur, Tamil Nadu, is expected to feature approximately 20 assembly lines and employ 50,000 workers within two years.

The goal is to make the site operational within 12 to 18 months, and discussions may involve seeking government subsidies under Prime Minister Narendra Modi’s production-linked incentives.

Apple’s key suppliers, including Foxconn and Pegatron, have accelerated manufacturing in India due to production-linked subsidies, helping Apple assemble over $7 billion worth of iPhones in the previous fiscal year.

The new plant, mid-sized on a global scale, aims to localize Apple’s supply chain and enhance the existing partnership with Tata, which already operates an iPhone factory in Karnataka.

The new plant is expected to be larger than Tata’s Wistron-acquired facility, employing over 10,000 people, but smaller than Foxconn’s significant facilities in China.

Apple and Tata may seek government subsidies for the new factory, aligning with efforts to localize production as previous state-backed financial incentives approach expiration.

Tata Group is diversifying its operations with Apple, accelerating hiring at its existing Hosur facility and planning to launch 100 retail stores focused on Apple products.

Apple, in turn, is expanding its presence in India with store openings and collaborations with manufacturing partners in various countries, moving away from heavy reliance on China.

 

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