Tata Electronics begins assembling iPhones at Hosur plant; to benefit Apple's diversification plans beyond China

Tata Electronics has commenced iPhone assembly operations, including iPhone 16 and iPhone 16e models, at its Hosur facility. This strategic move positions them to become a significant player in the smartphone supply chain sector, currently led by Taiwanese companies like Foxconn , according to industry experts.

Tata Electronics is continuing its rapid expansion, having purchased the Indian operations of Apple suppliers Wistron and Pegatron.

The company has established a dedicated mobile phone assembly unit at the facility, as sources told ET.

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Previously limited to manufacturing iPhone enclosures at Hosur, Tata Electronics has expanded its operations. "Earlier, Tata Electronics was doing assembly at their Wistron facility in Karnataka," a source revealed. "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."

Sources indicate that each assembly line requires more than 2,500 workers to manage complete assembly operations.

The source noted that upon reaching full capacity, this new Hosur assembly unit will surpass the operational scale of the Wistron facility.

For Tata Electronics, engaging in comprehensive assembly operations is a strategic advancement, enabling partnerships with supply chain entities and enhancing domestic value addition, according to Tarun Pathak of Counterpoint Research.

Industry analysts have indicated to the financial daily that this progress will also advantage Apple.

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According to Prabhu Ram of CyberMedia Research, "For Apple, which has been nudging its suppliers to diversify beyond China, this strengthens its India play." He notes that with Foxconn and Tata Electronics expanding operations and gaining expertise, Apple is positioned favourably to address supply chain concerns whilst boosting production for export and local markets.

The presence of two robust, experienced suppliers will be crucial as Apple seeks to expand its Indian operations and reduce Chinese dependency, according to industry experts.

Ram further stated, "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."

At its Hosur facility, Tata Electronics has been increasing its iPhone enclosure production. It organisation planned to double its current capacity of approximately 50,000 enclosures.