According to Bloomberg, Tata Group plans to build one of India’s biggest iPhone assembly factories, aligning with Apple Inc.’s ambition to increase its manufacturing presence nationwide.
According to insiders, the company intends to develop the facility in Hosur, in the southern state of Tamil Nadu. The complex is expected to house approximately 20 assembly lines and will employ roughly 50,000 people over the next two years. They further said that the location is expected to be operational in 12-18 months.
According to the article, neither Apple nor Tata responded to inquiries.
Improving Apple’s Supply Chain Localization
The proposed factory will likely support Apple’s efforts to localize its supply chain and strengthen its partnership with Tata. The Indian group is now in charge of an iPhone manufacturing operation acquired from Wistron Corp. in Karnataka.
The move in production base contributes to Apple’s aim to expand its operations outside China by cultivating relationships in India, Thailand, Malaysia, and other countries.
According to the article, Tata has been aggressive in its cooperation with the Silicon Valley behemoth by extending activities outside traditional industries such as salt and software. The company has increased employment at its current Hosur factory, focused on the production of iPhone casings, while simultaneously announcing ambitions to open 100 Apple-only retail stores. Apple has opened two locations in India, with plans for three more.
Government Incentives and Prospects for Growth
Prime Minister Narendra Modi’s production-linked incentives (PLIs) have encouraged Apple’s major suppliers, such as Foxconn Technology Group and Pegatron Corp., to expand their presence in India. This has resulted in significant growth in iPhone assembly in the nation, reaching $7 billion in the previous fiscal year and accounting for around 7% of the device’s worldwide manufacturing share.
The projected factory will be a mid-sized organization among Apple’s worldwide iPhone production sites. It is projected to outperform Tata’s purchased Wistron facility, which employs over 10,000 people while remaining smaller than Foxconn’s major production hubs in China, which employ hundreds of thousands.
Because the new plant would begin operations at a time when existing state-backed financial incentives are scheduled to expire, Apple and Tata are expected to seek government subsidies to assist its formation and expansion, according to the article.
