Tata Eyes Surge in iPhone Casing Production, Plans to Hit 1 Lakh Capacity

At its Hosur facility, Tata Electronics is dramatically increasing the volume of enclosures it produces for Apple's iPhones. According to a media report, Tata Electronics wants to triple its current capacity of about 50,000 enclosures.

The ramp-up will probably occur before Apple's annual product introductions, which happen in September. This is the second phase of the Hosur facility's build-out. Before the fire that occurred at the facility in September of last year, Tata Electronics had reached a capacity of roughly 50,000 enclosures, according to the article.

This setback prompted the company to halt its rapid expansion. After the fire, it took them a while to get back on track. However, the capacity has returned to its pre-fire levels.

India to Become iPhone’s Manufacturing Hub

The expansion drive by Tata Electronics follows recent remarks by Apple CEO Tim Cook that India will take over as the main location for iPhone production for US-sold devices. During Apple's Q1 earnings call on May 1, Cook stated that the company anticipates that the majority of iPhones sold in the US will be made in India during the June quarter.

 He went on to say that practically all iPad, Mac, Apple Watch, and AirPods items sold in the US would be made in Vietnam. With his statement regarding India, Cook signalled a dramatic change in the Cupertino-based company's production approach and solidified the notion that Apple was, in fact, seeking to diversify its supply chain away from China.

 Apple's Indian vendors are doing all in their power to seize this chance.

Apple Moving Away for China

Tata Electronics announced earlier this year that it has purchased a 60% controlling interest in Pegatron Technology India (PTI). Less than a year ago, in March 2024, the company acquired Wistron's India operations, which were situated in Narsapura, Karnataka.

 This was interpreted as an attempt by the business to solidify its position inside the Apple global value chain (GVC). Additionally, a media outlet revealed last week that Jabil, another Apple supplier, was also considering expanding the production of its AirPods casings in India. All of this is indicative of Apple's larger effort to diversify its Chinese supply base in the face of persistent trade tensions between the US and China and uncertainty surrounding global tariffs.

 For example, Foxconn's India division, another Apple supplier, has benefitted greatly. It is anticipated that the Tainwanese contract manufacturer will continue to increase its investments in mobile assembly in India.

The company is expanding into new production locations in India and diversifying its portfolio, as evidenced by the construction of a massive factory in Bengaluru and a brand-new facility in Hyderabad that is focused on AirPods.