Tata to invest Rs 6000 crore in 4th iPhone plant, will be operational from November ’24

Apple is gearing up to expand its manufacturing footprint in India with the establishment of a fourth iPhone assembly plant. This new facility, being developed by Tata Electronics, is expected to become operational in November 2024, according to a report by Business Standard.

Located in Hosur, Tamil Nadu, the factory marks a significant step for Tata Electronics, which recently acquired a similar plant from Taiwanese company Wistron in Karnataka.

The new plant is situated on a sprawling 250-acre site, where Tata had previously set up a components unit three years ago. The company is set to invest a substantial Rs 6,000 crore in the assembly plant, matching its earlier investment in the components unit.

This move underscores Tata’s growing involvement in Apple’s supply chain, particularly as Apple seeks to diversify its manufacturing operations away from China amid ongoing geopolitical tensions between China and the United States.

The Hosur plant is expected to be a major employer, with plans to hire over 50,000 workers, the majority of whom will be women. The assembly unit alone is projected to create jobs for 35,000 to 40,000 workers, making it the largest iPhone manufacturing facility in India.

This expansion is part of Apple’s broader strategy to increase its production capacity in India, where it has been ramping up operations over the past few years. The company began iPhone production in India just four years ago but has quickly scaled up, with India playing an increasingly crucial role in its global supply chain.

Analysts predict that India’s contribution to Apple’s total iPhone shipments could rise to 20-25 per cent this year, up from 12-14 per cent last year.

Apple’s contract manufacturers in India, including Tata, Pegatron, and Foxconn, are central to this expansion. Tata’s involvement is particularly significant, as the company is seen as a key player in Apple’s efforts to increase its manufacturing presence in India.

This aligns with Apple’s goal of shifting 10 per cent of its global iPhone manufacturing capacity to India by 2025-26, leveraging the Indian government’s production-linked incentive (PLI) scheme.

The new plant in Hosur is expected to contribute significantly to this goal, enhancing India’s position as a critical hub in Apple’s global supply chain. As Apple continues to diversify its manufacturing base, this investment by Tata not only strengthens its ties with the tech giant but also boosts India’s profile as a major player in the global electronics manufacturing sector.