HIGHLIGHTS
- The Tata Group wants to double the production capacity of its Hosur factory.
- It’s rumored that Apple has rigorous standards for Tata to meet while producing iPhones in India.
- According to reports, Foxconn intends to invest more than $1.5 billion in an Indian building project in order to meet the operational needs of an Apple supplier.
Tata Group is now the first Indian business to produce iPhones after completing the purchase of Wistron’s iPhone production facilities. Tata was producing spare components for Apple, including the iPhone case, at its Hosur site in Tamil Nadu prior to this transfer.
The Economic Times now claims that Tata Group wants to double the production capacity at its Hosur factory. In an effort to grow outside of China, Foxconn, the company that makes Apple iPhones, is purportedly going to invest $1.5 billion in India.
Tata intends to grow its Hosur initiative
According to the reports, Apple reportedly established strict standards for Tata to meet when producing iPhones in India. Additionally, these units will be exported to international markets. Approximately 15,000 people work at the 500-acre Tata Group complex in Hosur.
Presently, the strategy assembles some iPhone parts partially before they are placed in boxes. These components will be delivered to other Foxconn and Wistron locations when the iPhone is prepared for shipping. It is reported that in the next 12 to 18 months, the Hosur facility will be extended, which would contribute to double the production capacity. This will assist Tata in hiring 28,000 workers.
In order to plan for the development, Tata is apparently also investigating the surrounding territories. According to the ET story, Apple has given the Tata Group multiple goals to boost iPhone manufacturing in India. It seems that Apple has been attempting to lessen its reliance on China for iPhone production.
Foxconn plans to invest $1.5 billion In India
According to Taiwanese security papers, Foxconn intends to invest over $1.5 billion in an Indian building project to meet the operational demands of an Apple supplier. Through Hon Hai Technology India Mega Development, a Foxconn affiliate, the investment was made.
The Indian corporate records and securities filings indicate that this company has been registered in the state of Maharashtra since 2015. In a related filing, the company stated that in order to meet “operational needs,” it will invest the equivalent of $1.5 billion in Indian rupees for a development project. As Apple’s primary supplier, Foxconn conducts a large amount of business in China’s mainland.
A vital component of Apple’s iPhone production, the plants were damaged during the COVID-19 lockdowns. The implementation of lockdowns together with broader geopolitical unrest has forced Apple suppliers to reestablish their foothold in China. With a $500 million plant in Telangana and a $600 million project in the state of Karnataka, Foxconn is already well-represented in India.
Currently, neither the project’s details nor any important facts are revealed in the security filings. This follows Foxconn’s $19.5 billion “mutual agreement” chip manufacturing joint venture in India by a few months.
