Apple and Tata's Collaborative Endeavor: Unveiling India's Mega iPhone Manufacturing Hub

Fri, Dec 8, 2023 3:36 PM on Latest, Economy, International,

India's Tata Group aims to build a substantial iPhone assembly plant, aligning with Apple's push to expand manufacturing in the country. Sources familiar with the plan revealed Tata's intention to construct this facility in Hosur, Tamil Nadu, with the potential to accommodate 20 assembly lines and employ up to 50,000 workers within two years. The goal is to have the plant operational within 12 to 18 months.

This initiative supports Apple's efforts to localize its supply chain and strengthen its partnership with Tata, which already owns an iPhone factory from Wistron Corp. in Karnataka. Apple's strategy involves broadening its manufacturing beyond China by collaborating with partners across India, Thailand, and Malaysia.

While representatives from both companies declined to comment, Tata is intensifying efforts to bolster its ties with Apple, expanding beyond its conventional businesses. They are increasing hiring at their Hosur facility, which manufactures iPhone components, and planning to launch 100 retail stores exclusively selling Apple products. Meanwhile, Apple has already established two stores in India with plans for three more.

Prime Minister Narendra Modi's production incentives have encouraged Apple's key suppliers like Foxconn and Pegatron to scale up operations in India. This contributed to India accounting for about 7% of iPhone production, totaling over $7 billion in the previous fiscal year. The upcoming plant is expected to be a moderate-sized facility compared to global iPhone factories.

Both Apple and Tata may pursue government subsidies for the new factory, especially considering its production commencement aligns with the expiration of existing state-supported incentives.

Source: Economic Times