Tatas' Hosur plant starts assembling Apple's iPhones
Tata Electronics
has started assembling
iPhone
models including
iPhone 16
and iPhone 16e at its
Hosur
facility, a move that may help it emerge as a mainstream smartphone supply chain player — an area dominated by Taiwanese firms like
Foxconn
, experts said.
The electronics arm of the Tata Group has opened a new unit at the facility to begin mobile phone assembly, people aware of the developments told ET.
So far, the company has been making enclosures for the iPhone at Hosur. "Earlier, Tata Electronics was doing assembly at their
Wistron
facility in Karnataka," one of the sources said. "A few months back, they started assembly at a new plant at their Hosur campus where they launched around two lines and are looking to ramp it up to at least four more lines in some time."
Each line, this person said, can employ upwards of 2,500 people as it involves end-to-end assembly.
Once this new assembly unit in Hosur reaches its full capacity, it will be larger than the operations at the Wistron plant, he said.
Tata Electronics has been scaling expeditiously and has acquired the Indian arms of other
Apple
suppliers - Wistron and
Pegatron
.
Queries sent to Apple and Tata Electronics remained unanswered as of press time Monday.
"For Tata Electronics, getting into full scale assembly can be a strategic step as it provides a springboard for opportunities to tie up with other supply chain companies and is critical to add more value addition in the country," Tarun Pathak, research director at Counterpoint Research said.
The development will benefit Apple as well, experts told ET.
"For Apple, which has been nudging its suppliers to diversify beyond China, this strengthens its India play," said Prabhu Ram, vice president, industry research group, at CyberMedia Research. "With Foxconn and Tata Electronics rapidly scaling and gaining operational maturity, Apple is well-positioned to mitigate supply chain risk while accelerating production for both export and domestic markets."
As Apple looks to deepen its footprint in India and reduce its reliance on China, the presence of two strong, mature suppliers will be instrumental in enabling that growth, he said.
"As Tata Electronics deepens its engagement with Apple, it is well-positioned to build credibility and scale within the global electronics value chain-marking a pivotal step toward establishing itself as a competitive, end-to-end manufacturing partner," Ram added.
Tata Electronics has also been rapidly scaling up its production of enclosures for Apple's iPhones out of its Hosur unit. ET had reported on May 12 that the company was looking to double its existing capacity of around 50,000 enclosures.
The company had achieved a capacity of about 50,000 enclosures before the fire that took place at the unit in September last year, which forced it to press pause on its expansion.
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