Tata Electronics' Expansion: Doubling iPhone Casing Unit in Hosur

Tata Electronics Expansion in iPhone Casing Unit

Tata Electronics is set to make a significant expansion in its iPhone-casing facility in Hosur, aiming to double its current size. This strategic move follows Tata Electronics' recent acquisition of Wistron’s iPhone assembly plant in Karnataka, emphasizing their commitment to contract manufacturing for high-end electronic devices.

Existing Facility Details

• Location: Hosur
• Investment: Rs 5,000 crore
• Size: 500 acres
• Employees: 15,000

Proposed Expansion

• Timeline: 12-18 months
• Expected Workforce: 25,000-28,000 individuals

Focus and Speculations

• The new facility may primarily manufacture components for Apple phones.
• There is a possibility of catering to other high-end smartphone manufacturers.

Tata Electronics' Role in Apple's Strategy

Tata Electronics, the sole Indian company selected by Apple as a vendor, plays a crucial role in diversifying Apple’s manufacturing away from China, especially in producing iPhone enclosures. This expansion aligns seamlessly with Apple's strategy to strengthen smartphone manufacturing in India.

Industry Insights

• Tata Electronics is rumored to be planning a major plant in Hosur, aligning with Apple’s ambitious export targets from India.

Apple's Growing Reliance on Tata Electronics

• Apple surpassed Samsung in the second quarter of this year, becoming the leading smartphone exporter from India with a 49% market share.
• Apple's exports from India in the first seven months of FY24 reached over $5 billion, reflecting a remarkable year-on-year growth of 177%.

Mutual Partnership

• Tata Electronics and Apple's partnership solidifies India’s role in global smartphone manufacturing.