According to reports, Tata Electronics is gearing up to significantly expand its iPhone-casing facility in Hosur, with plans to double its current size.

The expansion comes on the heels of Tata Electronics’ recent acquisition of Wistron’s iPhone assembly plant in Karnataka, showcasing the company’s strategic move to bolster its contract manufacturing capabilities for premium electronic devices and accessories.

The existing Hosur unit, established with a substantial investment of Rs 5,000 crore, spans across 500 acres and houses over 15,000 employees. The proposed expansion, slated to be completed within the next 12-18 months, is expected to lead to a substantial surge in the workforce, reaching an estimated 25,000-28,000 individuals at the consolidated site.

A senior government official quoted in the report revealed, “The company is looking to expand the unit to 1.5-2 times the current size and capacity.” While there are speculations that the new facility may primarily focus on manufacturing components for Apple phones, there is also a possibility of catering to other high-end smartphone manufacturers.

Tata Electronics, being the sole Indian company shortlisted by Apple as a vendor, is playing a crucial role in diversifying Apple’s manufacturing operations away from China, especially in the production of iPhone enclosures. This expansion aligns seamlessly with Apple’s overarching strategy to bolster smartphone manufacturing within India.

Industry insiders have long believed that Tata Electronics is planning to establish a major plant in Hosur, underscoring its commitment to manufacturing phone components and potentially aligning with Apple’s ambitious export targets from India.

Apple’s growing reliance on Tata Electronics is evident, with the Cupertino-based tech giant steadily increasing its exports from India. In the second quarter of this year, Apple surpassed Samsung to become the leading smartphone exporter from India, commanding 49 per cent of the country’s total shipments compared to its Korean counterpart’s 45 per cent.

Estimates indicate that Apple has exported iPhones worth over $5 billion in the first seven months of FY24 (April-October) from India, marking a remarkable year-on-year growth of 177 per cent. This underscores the mutually beneficial partnership between Tata Electronics and Apple, further solidifying India’s role in global smartphone manufacturing.