Tata's iPhone manufacturing ambition: Hosur facility poised for a sizeable expansion; up to 28,000 new jobs expected

The Tata Group has ambitious plans to expand its iPhone-casing manufacturing facility in Hosur, India. The potential expansion might double the size of the current plant, occupying 500 acres and employing over 15,000 individuals. This move is anticipated to boost employment, potentially reaching between 25,000 and 28,000 workers. The initial investment for the Hosur facility stood at Rs 5,000 crore.

As per a report from The Economic Times, Tata Electronics aims to broaden its expertise in the high-end electronics manufacturing domain by leveraging its newly acquired iPhone assembly plant. This strategic step is expected to accelerate the company's growth trajectory.

The report indicates that the new plant will predominantly focus on producing components for Apple phones. However, its capabilities extend to manufacturing high-end phones for other companies as well, offering flexibility and diversification prospects.

A source mentioned in the report stated, "While the new facility could be dedicated entirely to Apple phone components, it shouldn't be discounted that it might also produce components for other high-end phones of different companies."

Tata Group's decision to expand manufacturing and augment its workforce follows its recent acquisition of Wistron's iPhone assembly plant in Karnataka's Kolar district. This milestone acquisition positions Tata as India's premier domestic iPhone manufacturer.

In preparation for a significant upsurge in high-end electronics production, a technology market analyst shared that this move aligns with Apple's overarching strategy of shifting smartphone manufacturing to India, aimed at diversifying its manufacturing base beyond China.

Simultaneously, Apple's move to establish manufacturing operations in India holds strategic significance, given India's pivotal position as a key market for the company. During an earnings call earlier this month, Apple CEO Tim Cook acknowledged India's importance, highlighting the company's record revenue in India during the June-September quarter.

Cook stated, "We had an all-time revenue record in India, we grew very strong double digits. It's an incredibly exciting market for us and a major focus of ours. We have a low share in a large market and so it would seem that there's a lot of headroom there... We see an extraordinary market-a lot of people moving into the middle class."

A recent Counterpoint report further accentuates India's growth trajectory, with sales soaring during the June-September quarter, contrasting the overall stagnation in the market. Apple's performance in India mirrors this trend, boasting a robust 34 per cent year-on-year growth rate. Moreover, in Q3 2023, Apple hit a milestone by setting a new record for shipments in India, surpassing 2.5 million units.

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