Apple’s strategic shift to diversify its global manufacturing operations has taken a decisive step forward as Tata Electronics has officially begun production of iPhones at its newly inaugurated state-of-the-art facility in Hosur, Tamil Nadu. The milestone marks a significant moment not only for Apple’s supply chain resilience but also for India’s growing clout in high-end electronics manufacturing.
The Tata Group’s entry into iPhone assembly represents the first time a fully Indian-owned company has joined Apple’s elite list of global manufacturing partners. The Hosur plant, developed in close coordination with Apple, is already producing the iPhone 15 and is expected to expand to newer models in the coming quarters.
“This is a proud moment for Indian manufacturing,” said a Tata spokesperson. “We are working closely with Apple to uphold the highest standards in quality and efficiency while contributing meaningfully to the Make in India vision.”
A Strategic Shift From China to India
Apple’s pivot to India has been in motion since the COVID-era disruptions and ongoing geopolitical tensions strained its dependency on Chinese factories. With China previously accounting for over 90% of iPhone production, Apple has faced increasing pressure to diversify its supply chain. India has emerged as a clear contender, backed by government incentives and a vast, skilled labor force.
The Indian government’s Production Linked Incentive (PLI) scheme for electronics has played a critical role in attracting Apple’s manufacturing partners. In recent years, Foxconn, Pegatron, and Wistron (whose iPhone production unit Tata acquired in 2023) have ramped up investments in India. With the new Tata facility now operational, Apple is expected to assemble nearly 25–30% of all iPhones in India by 2026, up from just 7% in 2023.
Foxconn Expanding Footprint in Karnataka
Meanwhile, Taiwanese manufacturing giant Foxconn is not far behind. The company is in the final phases of completing a major new factory near Bengaluru, Karnataka, which is projected to go online later this year. The plant will focus on assembling higher-end iPhone models and is expected to employ over 60,000 people at peak capacity.
Foxconn Chairman Young Liu recently visited India to oversee progress and engage with government officials, signaling the company's long-term commitment to the region. “India is more than a manufacturing alternative—it’s an essential pillar of our future strategy,” he said during a press briefing.
Boost to Local Economy and Jobs
The ripple effects of this manufacturing surge are already being felt across India. Thousands of jobs are being created directly within these factories, and tens of thousands more in ancillary industries, from logistics to component supply. Moreover, Apple is working to develop a more localized supply chain, pushing global suppliers to set up Indian operations or partner with domestic firms.
Apple CEO Tim Cook recently reaffirmed the company’s commitment to India during an earnings call. “India is a key focus for us. Not only as a market but as a critical base for manufacturing and innovation,” he said.
Looking Ahead
As Tata scales up its production capabilities and Foxconn brings its new plant online, Apple is poised to solidify India as a crucial manufacturing hub for its global operations. This shift could also lead to more competitive pricing of Apple products in the Indian market, as locally assembled devices often avoid import duties.
The iPhone’s journey from being a symbol of Western technology to a product partially made in India marks a new chapter for the global tech industry. For India, it underscores its evolution from an outsourcing destination to a serious player in advanced manufacturing.