Tata Group is planning to construct a substantial iPhone assembly plant in Hosur, Tamil Nadu, as part of its collaboration with Apple Inc. This plant, intended to be one of India’s largest, is expected to feature around 20 assembly lines and potentially employ up to 50,000 workers within the next two years, although these plans have not been officially announced.
The aim is to have the factory operational within the next 12 to 18 months, a move that would significantly contribute to Apple’s strategy of localizing its production and deepening its ties with Tata. Apple has been actively diversifying its manufacturing beyond China by establishing partnerships in India, Thailand, Malaysia, and other countries.
Both Apple and Tata have refrained from commenting on these developments. However, Tata has been actively expanding its relationship with Apple, enhancing its manufacturing capabilities in Hosur, where it currently produces iPhone enclosures. Additionally, Tata has revealed plans to launch 100 retail stores dedicated to Apple products. Meanwhile, Apple has initiated the opening of two stores in India and has three more in the pipeline.
Under Prime Minister Narendra Modi’s production-linked incentives, several key Apple suppliers, including Foxconn and Pegatron, have escalated their operations in India. This boost has facilitated Apple in manufacturing over $7 billion worth of iPhones in India in the previous fiscal year, expanding the country’s share in iPhone production to approximately 7%. This marks a significant shift from China, which previously handled all iPhone assembly.
Comparatively, the new Hosur plant, when operational, is expected to fall in the mid-range among Apple’s global iPhone factories. While larger than Tata’s existing Wistron facility (which employs over 10,000 workers), it would be smaller than Foxconn’s massive facilities in China, which accommodate hundreds of thousands of employees.