Tata Electronics is gearing up for a massive expansion in its iPhone assembly hub at Koothanapalli near Hosur in Tamil Nadu. If sources are to be believed, the company is set to increase its employee strength in the unit by 175 per cent to 55,000 as part of the expansion plans.
This is compared to around 20,000 employees that the company has in Hosur. The company did not respond to questions from Business Standard in this regard. This comes close on the heels of reports that the Tata Group company is in talks with Pegatron to acquire its unit near Chennai. It also acquired Wistron’s domestic operations in November last year for $125 million, becoming the first Indian company to manufacture iPhones. Both Wistron and Pegatron are Taiwan-based contract manufacturers for Apple.
Another Taiwanese major, Foxconn, is the largest manufacturer of iPhones in India, contributing to around 67 per cent of such phones produced in India, followed by Pegatron with 17 per cent and Wistron with 16 per cent share. Based on a Bloomberg report, Apple suppliers assembled iPhones worth $14 billion in India in 2023-24, accounting for 14 per cent, or one in seven iPhones, globally. Apple is producing iPhone 12, 13, 14, and 15 in India.
“The company is going for massive hiring in the Hosur region. The number of employees is expected to increase to 55,000,” said an industry source, speaking on the condition of anonymity. Later, another source confirmed the development. One could visibly see the massive infrastructure development happening on the ground at Koothanapalli, with new roads, lots of shops, and real estate projects coming up.
“This means more infrastructure will be required in the Hosur area. An addition of 35,000 more people would mean another 100,000 to 150,000 people will get shifted to the region,” the source added. After Tata Electronics acquired the Wistron India plant at Malur near Kolar in Karnataka, there were reports that it will invest around Rs 7,000 crore in its Hosur unit.
According to reports, the Foxconn units and the Pegatron unit helped Tamil Nadu in becoming the largest exporter of electronic goods in financial years 23 and 24. This is compared to the fact that Uttar Pradesh and Karnataka dominated the space until financial year 22. Between April 2023 and January 2025, the state contributed $7.4 billion to India’s electronic exports.
It was in 2020 that the Tata Group was allotted around 500 acres of land at the GMR Krishnagiri Special Investment Region, a joint venture of GMR and Tamil Nadu Industrial Development Corporation (TIDCO), in Uddanapalli near Hosur. The new unit at Koothanapalli is seeing the expansion at present.
Tata Electronics captured headlines recently when it carried out the groundbreaking for a Rs 91,000 crore semiconductor fabrication facility at the Dholera Special Investment Region (DSIR). This will be India’s first semiconductor fabrication plant.
First Published: Apr 14 2024 | 6:00 PM IST