Tata plans massive iPhone assembly plant in India

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Tata plans massive iPhone assembly plant in India

Tata plans massive iPhone assembly plant in India

Industry News
Dec 08,23

The conglomerate already owns an iPhone manufacturing facility, acquired from Wistron Corp, in Karnataka.

Tata plans massive iPhone assembly plant in India

Tata Group, a prominent conglomerate, is gearing up to establish one of the largest iPhone assembly plants in India, aligning with Apple Inc.'s push to expand manufacturing in the South Asian region. The proposed facility is slated for construction in Hosur, Tamil Nadu, as per sources familiar with the matter. Envisaged to feature approximately 20 assembly lines and potentially employ 50,000 workers within the next two years, the goal is to have the plant operational within 12 to 18 months.

This move is poised to reinforce Apple's strategy of localising its supply chain and strengthening its collaboration with Tata. The conglomerate already owns an iPhone manufacturing facility, acquired from Wistron Corp, in Karnataka. Apple has been strategically diversifying its manufacturing operations away from China, fostering partnerships in India, Thailand, Malaysia, and other locations for assembly and component manufacturing.

Apple declined to comment on the matter, and Tata representatives did not respond to inquiries. Tata has been actively enhancing its engagement with Apple, not only through its manufacturing endeavours but also by ramping up hiring at its existing facility in Hosur, where it currently produces iPhone enclosures. Additionally, Tata has announced plans to launch 100 retail stores dedicated to Apple products. Meanwhile, Apple has opened two stores in India and has plans for three more.

The Indian government's production-linked subsidies, championed by Prime Minister Narendra Modi, have catalysed Apple's key suppliers, such as Foxconn Technology Group and Pegatron Corp, to escalate their operations in India. This has contributed to Apple assembling over $7 billion worth of iPhones in the country in the previous fiscal year, elevating India's share of the device's production to approximately 7%. Notably, a significant portion of iPhones continues to be assembled in China.

The proposed iPhone assembly plant by Tata is anticipated to be of medium size on a global scale, surpassing the scale of the Wistron-acquired facility, which currently employs over 10,000 people, yet smaller than Foxconn's expansive facilities in China that employ hundreds of thousands.

As production is expected to commence just as existing state-backed financial incentives are set to expire, there is speculation that both Apple and Tata may seek government subsidies for the new facility.

Source: Indiatimes