Apple supplier to build ₹2,000 crore manufacturing facility in Tamil Nadu
Tamil Nadu now leads India in electronics exports, totalling $9.56 billion in FY24, up 78% from $5.37 billion in FY23.
Jabil Inc., an American contract manufacturer for Apple, plans to invest ₹2,000 crore to build a new electronics manufacturing facility in Tamil Nadu, employing 5,000 workers. Jabil will now join Foxconn, Pegatron, and Tata Electronics as the fourth Apple supplier in the state as a result of this event.
This new agreement was completed on Tuesday during Tamil Nadu’s Chief Minister (CM), M.K. Stalin’s, travel to the United States. With emphasis on the ₹2,000 crore project and the 5,000 new jobs in Tiruchirapalli, the chief minister announced the investment on X.
“A significant investment of ₹2000 crores at Tiruchirapalli by Jabil, a global leader in EMS. This will create 5,000 jobs and create a new cluster for electronics manufacturing. Rockwell Automation expanding its manufacturing with a ₹666 crore investment in Kanchipuram, adding 365 jobs. MoU with Autodesk to skill youth and boost MSMEs and startups, strengthening our overall industrial ecosystem,” Stalin posted on X.
Jabil not only supplies Apple but also Cisco and HP. There are currently 2,500 employees working for the company at its 8,58,000-square-foot Pune facility, according to the reports. Vietnam and China are Jabil’s two main export markets, and the company began making plastic AirPod bodies in India earlier this year.
Tamil Nadu’s Growing Electronics Exports
Tamil Nadu recently experienced an increase in electronics exports, which was mostly driven by iPhone shipments. The state now leads India in electronics exports, totalling $9.56 billion in FY24, up 78% from $5.37 billion in FY23.
These exports account for almost 33% of the total, exceeding the state’s $9 billion target. In the first four months of FY24, Apple reported phone exports totalling ₹34,089 crore, while the company’s domestic market was valued at ₹67,000 crore for 2023-24, sources reveal.
According to industry experts, one of the primary reasons for the increase in exports is the China-Plus-One strategy used by global giants such as Apple.
After this, suppliers like Salcomp and contractors like Foxconn and Pegatron assisted in establishing Tamil Nadu as India’s centre for electronics last year. The China-Plus-One strategy is a worldwide business approach that was first introduced in 2013. It involves corporations diversifying their investments by expanding their operations outside of China to other nations.
In December 2023, it was revealed that the Tata Group intended to build one of India’s largest iPhone assembly plants in Hosur, Tamil Nadu. This move was viewed as part of Apple Inc.’s goal to expand production in South Asia. According to the report, the facility is projected to have approximately 20 assembly lines and employ 50,000 people within two years.
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