Tata expands Hosur Apple iPhone factory, doubling production capacity
Tata Electronics, a Tata Group subsidiary, is set to double the size of its Hosur plant, where iPhone casings are produced, according to the Economic Times (ET). The existing Hosur plant, established with a Rs. 5,000 crore investment and spanning 500 acres, currently accommodates over 15,000 employees. This move follows Tata Electronics's recent acquisition of Wistron's iPhone assembly plant in Karnataka, aiming to enhance its contract manufacturing capabilities for premium electronic devices and accessories.
Expansion will create investment and employment opportunities
The expansion, expected to be completed within 12-18 months, will increase the workforce from 15,000 to 28,000. A senior government official told ET, "The company is looking to expand the unit to 1.5-2 times the current size and capacity." The new facility may primarily manufacture components for Apple phones but could also cater to other high-end smartphone manufacturers.
The move is aimed at aligning with Apple's export targets
Industry insiders suggest that Tata Electronics's Hosur expansion aims to meet Apple's ambitious export targets from India. An anonymous source told ET, "It is possible that Apple has set a huge target for exports from India and hence this facility could be used for that." Tata Electronics is the only Indian company shortlisted by Apple as a vendor, playing a vital role in diversifying Apple's manufacturing operations away from China, especially in iPhone enclosure production.
Tata Electronics's growing partnership with Apple
Apple has increasingly depended on Tata Electronics to meet the growing demand for iPhone exports. In Q2 this year, Apple overtook Samsung as India's leading smartphone exporter, with 49% of total shipments compared to Samsung's 45%. Recent estimates show that Apple exported iPhones worth over $5 billion (Rs. 41,680.72 crore) from India between April and October, marking a remarkable year-on-year growth of 177%.
Strengthening India's role in global smartphone manufacturing
The expansion of Tata Electronics's Hosur plant aligns with Apple's strategy to strengthen smartphone manufacturing in India. A technology market analyst explained, "Being part of the Tata Group, Tata Electronics has the resources to scale up and satisfy Apple's growing export demands." This mutually beneficial partnership between Tata Electronics and Apple solidifies India's role in global smartphone manufacturing and highlights the potential for growth in the country's electronics sector.
