Tata Group is gearing up to establish a colossal iPhone assembly plant in Hosur, Tamil Nadu, promising a job boom of 50,000 opportunities within the next two years.
This move is strategically aligned with Apple’s push to diversify its supply chain in India, marking a significant step in the tech giant’s manufacturing expansion.
The proposed facility in Hosur is set to house around 20 assembly lines, aiming for operational status within 12 to 18 months. This ambitious plan is a key element of Apple’s broader strategy to reduce reliance on Chinese manufacturing and forge stronger ties with partners like Tata. While no official announcements have been made, industry insiders anticipate a major boost to Apple’s localized supply chain efforts.
Tata’s commitment to this collaboration goes beyond manufacturing. At their existing Hosur facility, which specializes in iPhone enclosures, they’re significantly increasing their workforce, doubling the size of the plant, and investing Rs 5,000 crore. This expansion is poised to create 25,000 to 28,000 job opportunities, emphasizing the project’s potential impact on local employment.
In tandem with manufacturing, Tata plans to launch 100 retail stores exclusively dedicated to Apple products, mirroring Apple’s growing retail presence in India. This strategic move aligns with Prime Minister Narendra Modi’s production-linked subsidies, encouraging key Apple suppliers to expand operations in India. Last year, over $7 billion worth of iPhones were assembled in India, contributing to a 7% share in global iPhone production.
While the new plant in Tamil Nadu positions itself as a mid-sized facility globally, it is expected to surpass Tata’s existing Wistron facility. However, it will remain smaller than Foxconn’s colossal facilities in China.
As construction coincides with the expiration of state-backed incentives, Apple and Tata are likely to explore government subsidies to support this venture. Stay tuned for the unfolding of this monumental partnership reshaping India’s tech manufacturing landscape.