Tata Electronics, a key player in India’s tech landscape, is set to revolutionize iPhone manufacturing in the country. The conglomerate plans to establish a cutting-edge assembly plant in Chennai, aligning with Apple’s strategic shift away from China. This move signifies a pivotal step in India’s emergence as a global tech manufacturing hub.
In a bid to capitalize on Apple’s ambitious plans for increased production in India, Tata Electronics aims to set up one of the largest iPhone assembly plants in Hosur, Tamil Nadu. The proposed facility, expected to feature 20 assembly lines and provide employment for 50,000 workers within the next two years, mirrors Apple’s commitment to localizing its supply chain and fostering collaboration with Indian manufacturers.
The ambitious project, with an operational target within 12 to 18 months, is a testament to Tata’s dedication to diversifying its business portfolio. Tata’s existing iPhone factory, acquired from Wistron Corp in Karnataka, forms the foundation for this expansion.
Tata’s strategic move complements Apple’s global diversification strategy, which involves partnerships for assembly and component manufacturing in India, Thailand, Malaysia, and beyond. This initiative positions the new plant as a key player in Apple’s plan to ramp up iPhone production in India significantly.
Beyond manufacturing, Tata envisions a comprehensive approach, planning to open 100 exclusive Apple stores. This dual strategy of manufacturing and retail not only strengthens Apple’s retail presence in India but also marks a significant step for Tata in diversifying its business endeavors.
This venture aligns with Prime Minister Narendra Modi’s production-linked subsidies, encouraging global tech giants and their suppliers to establish and expand operations in India. In the last fiscal year, Apple’s iPhone production in India surpassed $7 billion, constituting approximately 7% of the global production share. However, Apple aims to increase this figure, with plans to produce at least 25% of all iPhones sold globally in Indian factories.
The new plant, positioned between Tata’s existing facility and larger-scale operations like Foxconn’s in China, is poised to play a crucial role in Apple’s global supply chain.
As state-backed financial incentives are set to expire, Apple and Tata may explore government subsidies, further fueling this groundbreaking venture. This move not only accelerates Apple’s India expansion but also cements Tata’s role in shaping the future of global tech manufacturing.