Tata’s Strategic Role in Apple’s Shift from China to India

Tata Electronics has emerged as a pivotal partner in Apple’s strategy to diversify its manufacturing away from China. This collaboration is reshaping India’s role in the global tech supply chain, particularly in Tier 2 cities like Hosur, where Tata’s facilities are located.

Tata’s Expansion into iPhone Manufacturing

In a significant move, Tata Electronics acquired Wistron’s iPhone assembly plant in Bengaluru in 2024, marking the first instance of an Indian company manufacturing iPhones. Additionally, Tata took over Pegatron’s iPhone operations in Tamil Nadu, further consolidating its position in Apple’s supply chain. These acquisitions have enabled Tata to scale up production rapidly, meeting Apple’s demand for increased manufacturing capacity in India.

Financial Impact and Export Growth

The partnership has yielded substantial financial gains for Tata Electronics. In FY25, the company reported revenues exceeding ₹75,000 crore, a significant increase from the previous year. Notably, nearly 37% of this revenue, amounting to over ₹23,000 crore, was derived from exporting iPhones to the United States. This shift underscores Apple’s commitment to reducing its dependence on Chinese manufacturing and highlights India’s growing prominence in the global electronics supply chain.

Strategic Implications for India

Tata’s involvement in iPhone manufacturing has broader implications for India’s industrial landscape. The establishment of advanced manufacturing facilities in cities like Hosur and Bengaluru has spurred local economic growth, creating employment opportunities and fostering skill development. Moreover, the influx of foreign investment and the adoption of cutting-edge manufacturing technologies are enhancing India’s competitiveness in the global market.

Conclusion

Tata’s strategic partnership with Apple signifies a transformative shift in global manufacturing dynamics. As Apple continues to diversify its supply chain, India’s role, particularly through Tata’s initiatives, is becoming increasingly central. This collaboration not only bolsters India’s position in the global tech industry but also sets a precedent for other nations seeking to attract high-tech manufacturing investments.