Tata Electronics Begins iPhone Assembly at Hosur Plant

214
21 May 2025
min read

News Synopsis

Tata Electronics has officially commenced iPhone assembly operations at its manufacturing unit in Hosur, Tamil Nadu, marking a pivotal moment in India's smartphone production landscape. By launching production of the latest iPhone 16 and iPhone 16e models, the company has significantly expanded its role in Apple’s global supply chain.

This development comes after Tata acquired the India operations of Apple suppliers Wistron and Pegatron, establishing itself as a serious contender in a space traditionally led by Taiwanese manufacturers.

Expansion from Component Manufacturing to Full Assembly

Previously, the Hosur facility was engaged in producing metal enclosures for iPhones. However, the company has now transitioned into complete smartphone assembly. According to sources, two assembly lines are already operational at the Hosur unit, and there are plans to add at least four more lines in the near future. This marks a clear shift in Tata’s strategy to grow beyond component manufacturing and enter high-value electronics assembly.

Each assembly line at the plant employs more than 2,500 workers, pointing to the massive scale of the project and its potential impact on regional employment. Tata had previously operated iPhone assembly at the Wistron plant in Karnataka, but the Hosur facility is expected to exceed that in scale and output.

Strengthening Local Supply Chains and Job Creation

The Hosur facility’s expansion represents more than just increased output—it signals a broader push for local value addition. With full-scale assembly now underway, Tata can now work more closely with other domestic suppliers to enhance the local sourcing of components. This step not only reduces dependency on imports but also fosters an ecosystem of electronics manufacturing in India.

The move is also aligned with the Indian government's "Make in India" initiative, which aims to turn the country into a global manufacturing hub. By scaling up assembly operations and hiring thousands of workers, Tata Electronics is playing a critical role in strengthening domestic manufacturing capabilities.

Strategic Advantage for Apple’s India Push

Experts suggest that Tata Electronics’ growing footprint will be crucial for Apple as it looks to reduce its dependency on Chinese suppliers and expand its presence in India. Tarun Pathak of Counterpoint Research noted that having both Tata and Foxconn as key suppliers will offer Apple the flexibility and resilience it needs in the global market.

With Apple urging its partners to diversify production locations, Tata’s assembly operations in India are well-timed. The collaboration is also expected to streamline supply chain logistics, leading to faster deliveries and reduced production bottlenecks.

Doubling Down on iPhone Enclosure Production

Apart from full-device assembly, Tata Electronics is also scaling up the production of iPhone enclosures at the same facility. The company plans to double its current enclosure output, which stands at around 50,000 units. This initiative aligns with its larger strategy of becoming a one-stop solution for iPhone manufacturing in India, covering both components and complete device assembly.

This integrated approach will not only improve operational efficiency but also position Tata Electronics as a high-value partner for Apple in the long term.

A Bright Future for India’s Electronics Manufacturing Ecosystem

As Tata Electronics expands its capabilities, its partnership with Apple is expected to deliver mutual benefits. The shift to assembling iPhones within India could lead to better production control, reduced costs, and more agile supply chains.

More importantly, it underscores India's emergence as a serious player in the global electronics manufacturing industry. Tata's Hosur facility is poised to become a central node in Apple’s production network, supporting both domestic sales and international exports.

The venture is also expected to drive technology transfer, skill development, and innovation, further strengthening India’s position in the global tech economy.

Podcast

TWN Special