TATA Electronics has launched iPhone assembly operations at its Hosur facility, potentially establishing itself as a significant player in Apple's global supply chain even as US President Donald Trump has asked Apple CEO Tim Cook to relocate production from India to the United States. This strategic expansion comes at a critical juncture for Apple's manufacturing diversification strategy and highlights the complex interplay between corporate objectives and geopolitical pressures in global technology production.

TATA Electronics has officially begun assembling iPhone models, including the iPhone 16 and iPhone 16e, at its Hosur facility in Tamil Nadu. Previously focused solely on manufacturing iPhone enclosures at this location, the company has now inaugurated a dedicated section within the facility specifically for comprehensive mobile phone assembly. This marks a significant evolution of the Hosur plant's capabilities, which was initially established for producing iPhone enclosures and had previously reached a capacity of approximately 50,000 units before experiencing a temporary setback due to a fire incident in September 2024.

The newly established assembly unit at Hosur currently operates two production lines with plans to expand to at least four additional lines in the near future. Each production line demonstrates considerable employment potential, capable of engaging over 2,500 workers as it encompasses comprehensive end-to-end assembly processes. Industry analysts anticipate that once operating at maximum capacity, the new assembly unit will surpass the scale of operations at TATA's Wistron plant in Karnataka, where the company had previously conducted assembly operations.

Expansion Strategy And Production Scaling

TATA Electronics has been aggressively scaling its production capabilities in the Apple ecosystem. The company aims to double its existing capacity of approximately 50,000 iPhone enclosures at the Hosur facility, with this capacity expansion expected to align with Apple's annual product launches typically held in September. This expansion represents Phase-II of the Hosur facility's development and demonstrates TATA's commitment to becoming a major manufacturing partner for Apple.

The company has strategically positioned itself through significant acquisitions within Apple's supplier network. In early 2025, TATA Electronics acquired a controlling 60 percent stake in Pegatron Technology India, following its acquisition of Wistron's India operations in Narsapura, Karnataka in March 2024. These moves reflect TATA's ambition to establish itself as a key player in Apple's supplier ecosystem, particularly as the tech giant seeks to reduce its dependence on Chinese manufacturing.

Trump's Call for Apple To Exit India

The expansion of TATA's iPhone assembly operations occurs against a backdrop of geopolitical complexity. On May 16, 2025, US President Donald Trump revealed that he had asked Apple CEO Tim Cook to cease iPhone manufacturing in India and relocate production to the United States. During his remarks in Doha, Qatar, Trump stated: "I had a little problem with Tim Cook yesterday. I said to him, 'Tim, you're my friend. I treated you very well. You're coming in with USD 500 billion (investment). But now I hear you're building all over India. I don't want you building in India if you want to take care of India.'"

Trump's comments reflect his broader "Make in America" agenda during his second presidential term, as he pushes for increased domestic manufacturing. He suggested that Apple could manufacture in India specifically for the Indian market, but expressed opposition to Indian-made iPhones being exported to the US market. Trump's statements came despite the fact that Apple currently has no smartphone production facilities in the United States, with the majority of its iPhone production occurring in China and approximately 15% (around 40 million units annually) manufactured in India.

Apple's Response And Strategic Considerations

Following Trump's comments, Indian government officials reportedly engaged in discussions with Apple executives, who provided assurances that Apple's investment plans for India remain intact. According to sources, Apple affirmed its intention to continue positioning India as a major manufacturing base for its products, although the company may be reassessing certain aspects of its expansion strategy.

Apple CEO Tim Cook had previously indicated during the company's quarterly earnings discussion on May 2, 2025, that "for the June quarter, we do expect the majority of iPhones sold in the US will have India as their country of origin". However, in light of recent developments including the trade agreement between the US and China regarding tariffs and Trump's statements, sources suggest that Apple is reviewing its expansion plans specifically aimed at the US market.

Implications For Apple's Global Supply Chain Strategy

The commencement of iPhone assembly at TATA's Hosur facility represents a significant development in Apple's broader supply chain diversification strategy. For several years, Apple has been working to reduce its manufacturing dependence on China amid rising trade tensions and tariff uncertainties. India has emerged as a crucial alternative manufacturing hub, with Cook highlighting the country's growing importance in Apple's global manufacturing strategy.

Industry expert Prabhu Ram from CyberMedia Research noted that Apple's strategy benefits significantly from the development of robust suppliers in India: "With Foxconn and TATA Electronics rapidly scaling and gaining operational maturity, Apple is well-positioned to mitigate supply chain risk while accelerating production for both export and domestic markets". This assessment underscores the strategic value of having established suppliers like TATA Electronics and Foxconn in India as Apple pursues its diversification objectives.

Foxconn's Parallel Investments In India

Concurrent with TATA's expansion, Foxconn (Hon Hai Precision Industry Co.), Apple's primary iPhone assembler, has planned to inject $1.5 billion into its India operations as part of its own diversification strategy away from China. The Taiwan-based company disclosed this investment, made via its Singaporean subsidiary, in an exchange filing on May 19, 2025. Currently, the bulk of India-made iPhones are assembled at Foxconn's factory in southern India, making it a critical component of Apple's manufacturing presence in the country.

Foxconn has been aggressively investing in India beyond this recent capital infusion, building a major new factory in Bengaluru and launching a facility in Hyderabad focused on AirPods production. These developments indicate a diversification of its India operations beyond mobile assembly and further strengthen Apple's manufacturing capacity in the country.

Conclusion

The commencement of iPhone assembly at TATA Electronics' Hosur facility marks a significant milestone in India's growing role in global electronics manufacturing, particularly in high-value segments like premium smartphones. Despite the challenges posed by recent geopolitical statements from the US President, both TATA Electronics and Apple appear committed to continuing their strategic partnership and expansion in India, albeit with possible adjustments to specific export strategies.

As the situation evolves, the development of robust local manufacturing capabilities by companies like TATA Electronics will likely remain a priority for both corporate strategy and national policy in India, even as they navigate the complex interplay of global trade politics. The coming months will be critical in determining how Apple balances its manufacturing diversification objectives with emerging political pressures from the United States.

IDN (With Input From Agencies)