Mobile Phone

How Apple’s “Made in India” Strategy Is Reshaping Tamil Nadu & Karnataka’s Tech Landscape

Price Research Team July 23, 2025
iphone manufacturing in India

Apple’s shift to Indian manufacturing is no longer just about assembling iPhones for local sale. In 2025, it’s a full-fledged supply chain realignment, one that’s drawing global suppliers, elevating local vendors, and strengthening Tamil Nadu and Karnataka as strategic production hubs. With exports crossing ₹1.5 lakh crore, India’s partnership with Apple is now anchored in value addition, not just volume.

Here’s a detailed look at this transformation.

1. What’s Driving Apple’s Local Manufacturing Push in India

Three major forces are converging:

  • Export Success: In FY25, India exported over ₹1.5 lakh crore worth of iPhones, making up nearly 76% of India’s total smartphone exports.
  • Rising Value Addition: Local sourcing has jumped from ~10% in 2022 to 20-30% in 2025, marking real supply chain decentralization.
  • Geopolitical Strategy: Apple is doubling down on its “China+1” approach, using India to hedge against geopolitical risk and diversify production capacity.

This isn’t a short-term policy response, it’s a structural shift toward manufacturing depth in India.

2. Where Apple Builds iPhones: Plants and Partnerships

A. Foxconn – Sriperumbudur, Tamil Nadu

The largest of Apple’s manufacturing partners in India, Foxconn’s facility:

  • Produces iPhone 14, 15, and SE models
  • Ships both to Indian and global markets
  • Has capacity of 2+ million units annually
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Foxconn is also setting up additional capacity to support accessories and components in 2026.

B. Pegatron – Tamil Nadu

Specializes in:

  • Entry-level iPhones for price-sensitive markets
  • Plans to shift ownership to Tata Group underway
  • Plant capacity supports India and select Asian regions

C. Tata Electronics – Karnataka and Tamil Nadu

Tata is now Apple’s most strategic Indian partner, having:

  • Acquired Wistron’s Narasapura unit in Karnataka
  • Taken over Pegatron’s TN plant in 2025
  • Started iPhone 16/e production at Hosur (TN)

Tata is also preparing to trial MacBook production by late 2026, marking Apple’s deeper trust in Indian partners.

3. What Apple Sources Locally in India Today

While India doesn’t yet produce chipsets or displays, a growing list of components are now sourced or built locally:

ComponentKey SupplierLocation
BatteriesSunwodaTamil Nadu
Chargers & AdaptersSalcompSriperumbudur, TN
Cables & ConnectorsFoxlink, local MSMEsAndhra Pradesh, TN
Enclosures (shells)Tata ElectronicsHosur, Karnataka
PCBs (partial)Avary/Zhen Ding via TataKarnataka
Packaging, ScrewsTier-2 MSMEsTN and Karnataka clusters

Local value addition now covers 100+ component SKUs, compared to <20 in 2022. Apple still imports SoCs, cameras, and displays due to limited local fab capacity.

4. How Local Electronic Parts/Components Sourcing Has Grown

Metric20222025
Local Content (% by value)~10%20-30%
Component Types Localized<20>100
No. of India-Based Vendors~1250+
Export Value (₹ crore)35,0001,50,000+

This level of growth shows Apple is not just assembling, it’s nurturing a sourcing ecosystem with long-term roots.

5. Why Tamil Nadu & Karnataka Are Central to Apple’s Plan

Tamil Nadu

  • Hosts Foxconn, Pegatron, Salcomp
  • Leverages Chennai Port and a mature industrial base
  • State offers fast-track approvals, power subsidies, and land support
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Karnataka

  • Tata’s Kolar and Hosur plants operate near Bengaluru
  • Access to engineering talent and fast-moving freight corridors
  • Key role in upcoming MacBook trial production

Together, these two states form the operational heart of Apple’s India strategy.

6. What Apple Still Imports, and Why That’s Hard to Change

While India has scaled basic component assembly, several core technologies remain imported:

  • Processors and SoCs – Built by TSMC (Taiwan)
  • OLED Panels – From Samsung and LG
  • Camera Modules and Sensors – From Sony, Sharp
  • Advanced PCBs and DRAM/SSD – From China, Korea

India lacks mature semiconductor fabs and panel fabs, so critical internals still rely on overseas sourcing.

7. How Apple’s Supply Chain Is Reshaping Local Industry – Impact on Logistics & MSMEs

Apple’s push has had ripple effects:

  • MSME Boom: Over 200 Indian MSMEs are now part of Apple’s extended vendor list
  • Skill Development: Engineering colleges and ITIs are now training for Foxconn/Tata lines
  • Logistics Upgrades:
    • GST-bonded warehouses for smoother export cycles
    • New air cargo routes optimized for just-in-time parts
    • Container movement streamlined through Chennai and Bengaluru corridors

The logistics and industrial uplift goes beyond Apple and benefits India’s wider electronics sector.

8. Future Outlook: iPads, MacBooks & Advanced Modules?

Looking ahead:

  • iPad assembly: Pegatron and Tata exploring pilot lines for mid-2026
  • MacBook production: Tata-Dixon discussions underway; may begin late 2026
  • Display module localization: Partial assembly targeted for 2027
  • Accessory ecosystem: Cables, chargers, and iPhone cases already locally sourced

Apple’s next leap could be in deep component value addition, if India’s semiconductor roadmap matures.

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Summary: This Is Apple’s Most Serious Bet Outside China

Apple’s presence in India has moved well beyond token assembly. With over ₹1.5 lakh crore in annual exports, a 30%+ localization milestone, and strategic state support, Tamil Nadu and Karnataka have become core to Apple’s global manufacturing strategy. While chips, cameras, and displays remain imported, India is becoming central to Apple’s iPhone export operations.

The next two years, especially if MacBook and iPad production starts, will determine whether India moves up the value chain or remains an assembly partner. For now, the local ecosystem is growing, and the supply chain is real.

Sources

Price Research Team

At PriceIndia, our research team is committed to delivering trustworthy information on products across categories. We track launches, market changes, and pricing updates to provide clear and reliable insights. Every article is carefully reviewed for accuracy, with attention to features and availability, ensuring transparency at every step.

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