Tata plans to construct a factory in Hosur, Tamil Nadu with about 20 assembly lines and 50,000 workers within two years. The goal is for the plant to be operational in 12 to 18 months. Apple is diversifying its operations away from China by partnering with assembly and component manufacturing partners in India, Thailand, and Malaysia. Tata has taken steps to increase its business with Apple and announced plans to launch 100 retail stores focused on Apple products. The new plant is expected to be mid-sized among iPhone factories globally and subsidies may be awarded.
Frequently Asked Questions
Q: Is Tata Group becoming an iPhone contract manufacturer?
A: Yes, India's Tata Group is reported to become Apple's fourth iPhone contract manufacturer, suggesting an expansion of production outside of China.
Q: When did Tata Group reportedly take over an iPhone factory from Wistron Corp in southern India?
A: The Tata Group is close to taking over a major plant in southern India from Taiwan's Wistron Corp, as reported on January 10, 2023.
Q: What is the significance of Tata's involvement in iPhone manufacturing?
A: Tata's involvement marks a shift in Apple's supply chain and production strategy, emphasizing the diversification away from China and potentially giving India its first homegrown iPhone manufacturing operation.
Q: How has India's role in iPhone production changed recently?
A: India's role in iPhone production has been increasing, as evidenced by a reported 65% year-on-year increase in the shipment volumes of iPhones manufactured in India, which highlights Apple's shift in production from China to India.
Q: What could be the reasons behind Apple diversifying its production away from China?
A: Apple is likely diversifying its production due to various factors, including the disruptions caused by COVID-19 lockdowns in China and the ongoing efforts to mitigate geopolitical risks by spreading its supply chain across multiple countries.
Q: Are there any reported production targets for iPhone manufacturing in India?
A: Although specific production targets are not mentioned, there is a reference to TrendForce's claim that Apple could manufacture up to 25% of all iPhones in India by 2025, with anticipation for further growth after that.
Q: Why might Apple be offering bonuses at Foxconn ahead of the iPhone 15 launch?
A: Foxconn, an Apple supplier, is offering hefty bonuses to workers, likely to ensure a stable workforce for the production ramp-up ahead of a new iPhone launch, in this case, the iPhone 15.
Q: Is Tata Group building one of India’s biggest iPhone plants?
A: Yes, there are reports of Tata planning to build one of India's biggest iPhone plants, which is expected to power Apple's expansion in the region.