Tata plans to build new iPhone factory in Tamil Nadu

The Tata Group is planning to build one of India's largest iPhone assembly plants in Hosur, located in the southern state of Tamil Nadu, as per report. The move is being seen as part of Apple Inc.'s strategy to increase manufacturing activities in the South Asian nation. However, there’s no official announcement as of now from Tata Group or Apple Inc.

As per report, the facility is anticipated to feature approximately 20 assembly lines and is expected to employ 50,000 workers within two years.

This initiative is in line with Apple's objectives to localise its supply chain and strengthen its collaboration with Tata. The conglomerate already owns an iPhone factory acquired from Wistron Corp. in the neighbouring state of Karnataka. Apple, in its efforts to diversify operations away from China, has been partnering with manufacturing and assembly partners in India, Thailand, Malaysia, and other locations.

Tata has also taken additional measures to expand its association with Apple, moving beyond its traditional businesses that range from salt to software. The company has increased hiring at its existing facility in Hosur, where it manufactures iPhone enclosures, and has announced plans to launch 100 retail stores focused on Apple products. In parallel, Apple has initiated the opening of two stores in India with plans for three more.

Under Prime Minister Narendra Modi's production-linked subsidies, key Apple suppliers like Taiwan's Foxconn Technology Group and Pegatron Corp. have increased their operations in India. This development has enabled Apple to assemble over $7 billion worth of iPhones in India in the previous fiscal year, elevating the country's share in the device's production to around 7%. The remaining iPhones continue to be assembled in China, which until recent years made all of them.

The proposed new plant is expected to be of moderate size on a global scale among iPhone factories. It is likely to surpass the scale of Tata's existing facility acquired from Wistron, which employs more than 10,000 individuals, but is anticipated to be smaller than Foxconn’s biggest China facilities, which employ hundreds of thousands of workers.

Foxconn’s India subsidiary previously entered into an agreement to purchase a 300-acre land parcel on the outskirts of Bengaluru, India's technology hub, with the intention of expanding iPhone production. Foxconn originally aimed to invest $500 million in Telangana, generating 25,000 job opportunities. Recently, an MoU was signed between the subsidiary of Taiwan's Hon Hai Technology group and the Telangana government. According to this agreement, the company plans to invest in the state, creating over 100,000 jobs over the course of a 10-year period.