Tata Group to launch iPhone assembly plant in India; Rs 6,000 crore investment planned

Tata Group is setting up a new iPhone assembly plant in Hosur, Tamil Nadu, expected to start operations by the festive quarter of 2024. This expansion marks a significant boost to Apple's manufacturing presence in India, aligning with the 'Make in India' initiative. The move is part of Apple's global production strategy, aiming to reduce dependence on Chinese manufacturing. The new plant will create jobs and contribute to the local economy. This development highlights India's growing importance in the global tech supply chain, with Tata Group playing a key role in Apple's expansion plans in the country.

The Hosur plant, sprawling over 250 acres, is expected to employ over 50,000 workers, the majority of whom will be women. This initiative aligns with Tata's commitment to creating sustainable employment opportunities and supporting India's economic growth. The plant will manufacture iPhones using components from a unit that Tata set up a couple of years ago. Tata Electronics is reportedly investing Rs 6,000 crore in the new plant, signaling the company's long-term plans to deepen its integration with Apple's operations.

The Tata Group's venture into iPhone assembly follows its acquisition of Taiwanese electronics manufacturer Wistron's India operations for $125 million in October last year. The iPhone contract manufacturers in India now include Foxconn, Tata, and Pegatron. This acquisition and the subsequent establishment of the new assembly plant underscore Tata's strategic investment in high-precision manufacturing, a sector that is crucial to the production of advanced electronics such as smartphones.

The shift in Apple's manufacturing to India comes as the tech giant aims to manufacture more than 50 million iPhones in the country per year. This move is part of Apple's broader strategy to diversify its production base, reduce reliance on China, and tap into the large Indian market and skilled workforce. By expanding its operations in India, Apple is not only mitigating supply chain risks but also catering to local demand and potentially exporting iPhones, thereby making India a significant hub in its global production network.

Meanwhile, Apple has begun training thousands of workers at its factory in Sriperumbudur, Tamil Nadu, operated by Foxconn, for the launch of the latest iPhone 16 Pro and Pro Max models in the country post their global debut this fall. Foxconn, a major Apple supplier globally, has invested $1.4 billion in India to date, with more to come. The Taiwanese contract manufacturing giant's business in India has surged to $10 billion till the last fiscal, according to its CEO and Chairman, Young Liu.

The iPhone 16 Pro Max and iPhone 16 Pro are set to be Apple's next high-end flagship models and the first 'Pro' iPhones to be manufactured in India, according to a report by Bloomberg. The publication reports that Foxconn will be responsible for producing these devices in India, beginning just a few weeks after their global launch. This accelerated recruitment is aimed at ensuring the iPhone 16 Pro and iPhone 16 Pro Max are ready in time for the global launch, which is expected sometime in September.

Apple has already been manufacturing iPhones in India and exporting them globally. However, it has primarily been the standard models, such as the iPhone 14, iPhone 14 Plus, iPhone 15, and iPhone 15 Plus, that have been produced locally. Amid rising global tensions between Washington DC and Beijing, Apple has been gradually reducing its reliance on Chinese manufacturing. Over the years, the Cupertino-based giant has expanded its operations and identified India as a key market for both consumers and production.

Establishment of the new iPhone assembly plant by Tata Group marks a significant milestone in Apple's expansion in India. This move not only bolsters the 'Make in India' initiative but also positions India as a key player in Apple's global production network. With the expected creation of thousands of jobs and the potential for high-end iPhone models to be manufactured locally, this development is a testament to the growing synergy between Indian industry and global tech giants. The future of Apple's operations in India looks promising, with the tech giant poised to make the most of the opportunities that the country offers.