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TATA Is Emerging As 'India's Foxconn' In Apple's New Supply Chain

TATA Is Emerging As 'India's Foxconn' In Apple's New Supply Chain


TATA Group is positioning itself as a major participant in Apple’s provide chain, akin to Foxconn, by buying a majority stake in Pegatron’s iPhone manufacturing facility in Tamil Nadu. This strategic transfer, introduced on November 20, 2024, includes TATA acquiring a 60% stake in Pegatron’s plant, which is chargeable for producing roughly 5 million iPhones yearly and employs round 10,000 employees.

TATA’s acquisition of Pegatron’s facility follows its earlier takeover of Wistron’s iPhone meeting unit in October 2023, the place it secured full possession for about $125 million. This enlargement solidifies TATA’s position as a significant provider inside Apple’s ecosystem in India.

With the addition of Pegatron’s facility, TATA now controls three manufacturing websites devoted to iPhone manufacturing. This consists of plans for a brand new plant in Hosur, Tamil Nadu, geared toward additional enhancing its manufacturing capabilities.

The transfer is a part of Apple’s broader technique to diversify its provide chain away from China attributable to geopolitical tensions and rising prices. India is rising as a viable various, supported by favorable authorities insurance policies just like the Manufacturing-Linked Incentive (PLI) scheme, which has attracted vital investments within the electronics sector.

Analysts predict that India’s contribution to world iPhone manufacturing might attain almost 24% this yr, doubling from the earlier yr’s figures. This shift is facilitated by TATA’s aggressive enlargement and funding in superior manufacturing applied sciences.

TATA’s rising involvement in Apple’s provide chain not solely enhances its manufacturing footprint but additionally positions it to satisfy Apple’s bold aim of manufacturing over 50 million iPhones yearly in India throughout the subsequent few years. As TATA continues to develop its capabilities, it’s set to problem established gamers like Foxconn and develop into a cornerstone of Apple’s world manufacturing technique.



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