Tata Group Plans Massive iPhone Assembly Hub To Boost Apple's Expansion In India

This story was first published on the Benzinga India portal.

The Tata Group is poised to launch one of the largest iPhone assembly facilities in India, aligning with Apple Inc.'s AAPL plan to expand its manufacturing presence in South Asia. The ambitious project, set to be constructed in Hosur, Tamil Nadu, is expected to host about 20 assembly lines and employ nearly 50,000 workers over the next two years. The goal is to have the plant fully operational within 12 to 18 months.

According to a report by Bloomberg, this new facility marks a significant shift for Apple, aiding in its effort to move its production base away from China, and for Tata, showing its growing influence in the tech industry.

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This project strengthens the existing bond between Apple and Tata. The latter currently manages an iPhone manufacturing plant in Karnataka, which was procured from Wistron. Apple is actively seeking to diversify its operations, partnering with assembly and manufacturing firms in India, Thailand, Malaysia, and other regions.

Tata's growth in the tech sector is apparent, with an increased workforce at its Hosur location, where it makes iPhone enclosures, and plans to launch 100 stores exclusively selling Apple products. Concurrently, Apple has opened two stores in India and intends to inaugurate three more.

This move is in line with Indian Prime Minister Narendra Modi's production-linked incentives, prompting major Apple suppliers like Taiwan's Foxconn Technology Group and Pegatron to expand their operations in India. In the last fiscal year, Apple assembled iPhones valued at over $7 billion in India, increasing the country's contribution to around 7% of iPhone production, a significant shift from China's previous dominance.

The proposed Tata facility, likely larger than the one obtained from Wistron but smaller than Foxconn's major Chinese plants, might seek government subsidies, particularly as existing state-backed financial incentives are nearing their expiration.

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