Tata’s ₹6,000 crore Hosur facility to begin manufacturing iPhones in November 2024, says report

Tata Electronic's iPhone manufacturing plant in Hosur, Tamil Nadu, is likely to begin production in November this year, Business Standard reported citing sources.

The 250 acre Hosur facility is Apple's fourth such assembly plant in India, and Tata Electronics' second for the US-based tech major's flagship smartphone line.

Sources said "preparations are in full swing", adding that enclosures produced at the plant's components factory set in up in 2021 are already used for some iPhone models built in India and exported to China, the report said.

They added that the facility, in full, would hire 50,000 blue-collared employees, majority women. In terms of staff strength it would be second only to Foxconn's Apple iPhone facility in Tamil Nadu, the report said.

Apple and Tata Electronics did not respond to queries, the report added.

"Equipment and production lines are being stress-tested to meet the high demand expected at this new facility," sources told the paper.

Facility to Boost Apple’s India Production

As per a Bloomberg report earlier this year, the Hosur facility is aligned with Apple Inc.'s strategy to expand its manufacturing footprint in India.

The Bloomberg report added that the facility is anticipated to accommodate around 20 assembly lines and aims to employ around 50,000 workers within the next two years. They added that the site is projected to be operational within 12-18 months.

Both Apple and Tata did not respond to queries, the report said.

Strengthening Apple's Supply Chain Localisation

The prospective plant is expected to bolster Apple's pursuit of localising its supply chain and enhance its collaboration with Tata. The Indian group at present oversees an iPhone manufacturing unit obtained from Wistron Corp. in Karnataka.

The shift in manufacturing base plays into Apple's efforts to diversify operations beyond China by fostering partnerships across India, Thailand, Malaysia, and other regions.

According to a report from the Wall Street Journal on December 7, Apple and its suppliers have set a goal to manufacture over 50 million iPhones annually in India over the next two to three years. They also plan to produce tens of millions of additional units in the following period, it added.

Tata has been proactive in its partnership with the Silicon Valley giant by expanding operations beyond conventional sectors, from salt to software, the report noted. The group has ramped up employment at its existing Hosur facility, focusing on producing iPhone enclosures, while also outlining plans to introduce 100 retail outlets dedicated to Apple products. In tandem, Apple has initiated two stores in India with plans for three more.