Tata Electronics is set to double its iPhone casing production capacity at its Hosur facility in Tamil Nadu, increasing output from 50,000 to 100,000 units. This expansion aligns with Apple’s strategy to diversify its manufacturing base beyond China, especially in light of escalating U.S.-China trade tensions and potential tariffs.
📈 Strategic Expansion in Hosur
The Hosur plant, which previously faced a temporary setback due to a fire in September 2024, has now returned to its pre-fire production levels. The planned capacity increase is part of the second phase of development at the facility, aiming to meet the anticipated demand ahead of Apple’s annual product launches in September.
🏭 India’s Growing Role in iPhone Manufacturing
Apple’s shift towards India is evident, with the country currently accounting for approximately 18% of global iPhone production. The tech giant plans to increase this share to over 30% by 2026, with Tata Electronics and Foxconn playing pivotal roles in this expansion.
Tata’s involvement has been significant, including the acquisition of a 60% stake in Pegatron’s iPhone manufacturing plant in Tamil Nadu. This move not only enhances Tata’s manufacturing capabilities but also strengthens India’s position in Apple’s global supply chain.
🔍 Implications for the Global Supply Chain
Apple’s increased investment in India serves as a strategic move to mitigate risks associated with over-reliance on Chinese manufacturing. The expansion in Hosur is a testament to this strategy, ensuring a more resilient and diversified supply chain.Business Standard
Furthermore, the growth of iPhone manufacturing in India is expected to generate significant employment opportunities and bolster the country’s position in the global electronics manufacturing landscape.
