Tata Set To Double Apple iPhone Manufacturing Unit Capacity In Hosur; Expected To Employ 28,000 People

Tata Electronics, a division of the Tata Group, is having a big plan to expand its iPhone-casing manufacturing facility in Hosur, aiming to double its current size, according to sources cited by the Economic Times.

After the recent acquisition of Wistron's iPhone assembly plant in Karnataka, Tata Electronics is strategically positioning itself to enhance its contract manufacturing capabilities for premium electronic devices and accessories.

The existing Hosur unit, established with a significant investment of Rs 5,000 crore, spans 500 acres and employs over 15,000 individuals. The proposed expansion, expected to be completed within 12-18 months, could lead to a workforce increase to approximately 25,000-28,000 individuals at the consolidated site.

A senior government official told the daily: "The company is looking to expand the unit to 1.5-2 times the current size and capacity."

Although speculations indicate that the new facility would mainly focus on manufacturing components for Apple phones, the chances of manufacturing components for other smartphones cannot be ruled out.

In October, Electronics and Technology Minister Rajeev Chandrasekhar announced that Tata Group will start making Apple iPhones in India for domestic and international markets within two and half years.

Taiwan's Wistron Corp., a contract manufacturer for Apple, will sell its India division to the Tata Group for a sum of $125 million.

Coming to Tata Group, it is already producing an iPhone chassis, which forms the metallic framework of the device, at its factory located across hundreds of acres of land in Tamil Nadu.

Apple's decision to set up manufacturing operations in India is strategically significant, as India is a crucial market for the company. In an earnings call earlier this month, Apple CEO Tim Cook underscored India's importance, pointing out the company's record revenue in 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."