This new plant will enhance Apple’s efforts to localise its supply chain and diversify its operations away from China
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Tata Group has plans to build one of the country’s largest iPhone assembly plants. This move aligns with Apple Inc.’s goal to increase its manufacturing presence in South Asia.
According to a Bloomberg report, the proposed factory is expected to be located in Hosur, a city in Tamil Nadu. The plan is to have the facility operational within 12 to 18 months, with about 20 assembly lines and a workforce of 50,000 within two years.
This new plant will enhance Apple’s efforts to localise its supply chain and diversify its operations away from China. It will also strengthen its partnership with Tata, which already owns an iPhone factory in Karnataka, which was acquired from Taiwanese company Wistron.
Size of upcoming Apple factory
The upcoming plant is expected to be mid-sized compared to other iPhone factories worldwide. It could be one of the largest in India but it will still be significantly smaller than the biggest of iPhone manufacturing facilities in China. For some context, the Wistron factory acquired by Tata employs over 10,000 people, reportedly the new iPhone factory in Hosur could employ as many as 50,000 workers.
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However, the biggest Foxconn facilities in China have hundreds of thousands of workers.
Expanding business with Apple
Tata Group is not just focusing on iPhone assemblies. It is also accelerating hiring at its existing facility, where it produces iPhone enclosures or metal casings. Additionally, Tata plans to launch 100 retail stores focused on Apple products. Apple, on its part, has already opened two stores in India and plans to open three more.
Last week it was reported that Tata Group is planning to make its iPhone-casing factory in Hosur, India, twice as big. The expansion is expected to take up 500 acres of land and give jobs to over 15,000 people. The total number of workers can go up to 28,000.
Government subsidies and production
According to the report, Apple and Tata are likely to request government subsidies for the new factory, especially as it is expected to start production just as previous state-backed financial incentives are set to expire.
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The govt introduced production-linked subsidies that have encouraged Apple’s key suppliers to increase their operations in India. This has resulted in Apple assembling more than $7 billion worth of iPhones in India in the previous fiscal year, making up about 7% of the device’s global production.
