The establishment of this new facility will further Apple’s initiatives to localize its supply chain and broaden its operations beyond China.
Tata Group is set to construct one of India’s largest iPhone assembly plants, aligning with Apple Inc.’s strategy to expand its manufacturing presence in South Asia. The proposed facility, reportedly located in Hosur, Tamil Nadu, aims to be operational within 12 to 18 months, featuring approximately 20 assembly lines and a workforce of 50,000 within two years. This initiative contributes to Apple’s efforts to localize its supply chain and diversify its global operations beyond China. The upcoming plant, while expected to be mid-sized in comparison to other global iPhone factories, represents a significant expansion for Apple’s manufacturing capabilities in India. Tata Group’s partnership with Apple is further strengthened, building upon their existing collaboration at an iPhone factory in Karnataka, formerly owned by Wistron.
The size of the new iPhone factory in Hosur is anticipated to be substantial, potentially making it one of the largest in India, although still smaller than the largest iPhone manufacturing facilities in China. While the current Wistron factory, now owned by Tata, employs over 10,000 individuals, the new Hosur facility could provide employment for as many as 50,000 workers. Tata Group is not solely concentrating on iPhone assemblies; it is also ramping up hiring at its existing facility, which produces iPhone enclosures or metal casings. Furthermore, Tata plans to launch 100 retail stores exclusively focused on Apple products, complementing Apple’s own stores in India.
Recent reports suggest Tata Group’s plan to expand its iPhone-casing factory in Hosur, potentially doubling its size, occupying 500 acres of land, and creating jobs for over 15,000 people, with the total workforce reaching up to 28,000.
In seeking to maximize support for the new factory, Apple and Tata are likely to request government subsidies, particularly considering the anticipated commencement of production coinciding with the expiration of previous state-backed financial incentives. The Indian government’s production-linked subsidies have incentivized Apple’s key suppliers to expand operations in the country, resulting in Apple assembling over $7 billion worth of iPhones in India during the previous fiscal year, constituting approximately 7% of the device’s global production.
