Tata Electronics is substantially increasing its iPhone enclosure manufacturing capacity at their Hosur facility, according to sources familiar with the matter. The production expansion initiative by Tata Electronics aligns with recent declarations from Apple CEO Tim Cook regarding India’s future role as the primary manufacturing destination for US-bound iPhones.“For the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin,” Cook said during Apple’s Q1 earnings call on May 1.“Tata Electronics is looking to double its existing capacity of around 50,000 enclosures,” one person told ET. “The ramp-up will likely take place ahead of the product launches that Apple does around September every year. This is Phase II of the build-out at the Hosur facility.”The source indicated that before the September last year fire incident at the unit, Tata Electronics had reached a production capacity of approximately 50,000 enclosures. The fire incident necessitated a temporary halt to their swift expansion plans.
Tata Electronics’ Apple plans
“It took some time for them to get back on track post the fire,” another person said. “But the capacity is at pre-fire levels now.”Vietnam will be the primary source for nearly all iPad, Mac, Apple Watch and AirPods products destined for the US market.The announcement regarding India by Cook signified a crucial change in the production approach of the Cupertino-based organisation, confirming its intention to diversify manufacturing operations beyond China.Apple’s India-based suppliers are actively pursuing this manufacturing opportunity.Also Read | Turnaround from importer to exporter! India now shipping Apple product components to China & VietnamTata Electronics acquired a majority 60% ownership in Pegatron Technology India (PTI) earlier this year. This followed their previous acquisition of Wistron’s India operations (situated in Narsapura, Karnataka) in March 2024. These moves indicated the company’s efforts to enhance its position in Apple’s global value chain (GVC).Additionally, the financial daily reported last week that Jabil, another Apple supplier, planned to increase its AirPods casings production in India.These developments indicate Apple’s broader strategy to expand its supplier network beyond China, considering global tariff uncertainties and the ongoing trade tensions between Washington and Beijing.Foxconn’s Indian operations have significantly benefited from this shift. The Taiwanese contract manufacturer has substantially increased its mobile assembly investments in India, with further growth anticipated.The organisation is establishing a substantial factory in Bengaluru and has launched a new facility in Hyderabad focused on AirPods production, demonstrating its expansion into diverse manufacturing sectors in India.Also Read | Dealing with Trump’s tariffs: Apple exports 97.6% of iPhones to US from India to preempt higher tariffs on imports from China
