Apple to Open New Manufacturing Facility in India with Tata Group
New Apple Manufacturing Facility in India
Apple is set to open its fourth manufacturing facility in India through a partnership with the Tata Group. The facility will focus on manufacturing iPhones, which is in line with Apple’s strategy of accelerating its supply chain in India. According to unnamed sources cited by Bloomberg, the new factory will have 20 assembly lines and employ 50,000 staffers within two years of being operational. The Tata Group plans to make the factory operational within the next 12 to 18 months.
India’s Growing Importance to Apple
India is becoming increasingly significant for tech companies like Apple due to its human capital, relatively cheap labor pool, maturing supply chain, and pragmatic approach. As Apple looks to scale down its operations in China amidst the ongoing trade war, it is aiming to scale up its operations in Asian economies, including India, Thailand, Vietnam, and Malaysia. The acquisition of an iPhone assembly plant by the Tata Group in Karnataka and the recent launch of retail stores in Mumbai and New Delhi are further indications of India’s growing importance to Apple.
Expanding Apple’s Manufacturing Operations
The shift of manufacturing operations to India gained momentum when New Delhi provided initial clearance to several Chinese suppliers who assemble Apple products and sell parts to the company. In addition to the Tata Group, other contract manufacturers like Foxconn and Pegatron are also producing Apple products in India. Foxconn, the largest global contract manufacturer, has a plant in Tamil Nadu, while Pegatron has a plant in Tamil Nadu and plans for a second one.
Benefits for India
The new manufacturing facility from the Tata Group is expected to create ample employment opportunities in India while positioning the country at the forefront of Apple’s manufacturing plans. As Apple diversifies its manufacturing operations beyond China, India has become a prominent second destination. The country’s growing role in Apple’s supply chain network has propelled it to become the fourth-largest in this regard. Apple’s strategy to accelerate its supply chain in India is driven by factors such as the availability of human capital, cost advantages, and a maturing supply chain.
Source: Apple set to open its 4th iPhone factory in India in a China+1 strategy
