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How TATA Became Apple’s Top Indian Partner in the Shift Away from China (2025 Update)

Apple’s plans to reduce its reliance on China have turned the spotlight on India, and Tata is leading that charge. In just two years, India has jumped from making 5% of the world’s iPhones to almost 15%. This sharp rise points to something bigger: Apple now wants India to supply nearly half of its iPhones by 2026, and Tata is at the heart of this shift.

Thanks to a mix of trade tensions with China, tariffs, and the push for a more resilient supply chain, Apple needed a strong local partner. Tata answered that call by snapping up key facilities and stepping up production. Just this year, Tata’s plants are set to handle up to half of all iPhone assembly in India, pushing the country’s iPhone exports to a record $7.5 billion between April and July alone.

India’s government is offering solid support through incentives and a growing base of skilled workers, making Tata the perfect ally for Apple as it doubles down on Indian manufacturing. Tata’s rise is making headlines, with both the company and India playing a key role in Apple’s global plans now and for the future.

Why Apple Needed a New Partner Beyond China

For years, China has been the heart of Apple’s iPhone production. The country offered a vast, skilled workforce, established supply chains, and factories running at an incredible scale. Around 80% of the iPhones sold in the U.S. were made there, showing just how deeply Apple depended on China for its most important product.

But from 2020 onward, the situation started to change. Rising trade tensions, especially between the U.S. and China, meant tariffs were unpredictably hitting Apple’s costs. The global pandemic exposed how fragile the supply chain was—factories shut down, shipments delayed, and uncertainties piled up. This perfect storm made it clear: Apple could no longer rely so heavily on just one country. It had to diversify.

The Risks of Relying on China for iPhones

This reliance introduced major risks, including:

• Tariff costs: Sudden increases in taxes on imports from China drove up prices or ate into profits.
• Geopolitical tensions: Political conflicts between the U.S. and China threatened smooth trade and manufacturing cooperation.
• Supply chain disruptions: Events like COVID-19 shutdowns and logistics bottlenecks exposed vulnerabilities.
• Rising wages and costs: Labor costs in China have been climbing, reducing its cost advantage.

These factors combined created a strong incentive for Apple to search for a more dependable and diversified manufacturing footprint.

How These Risks Pushed Apple to Explore Alternatives

Starting in 2020, Apple began expanding production in other countries like India and Vietnam. The goal was clear: reduce risks by having multiple manufacturing hubs. This diversification makes delays or political moves from any single country less dangerous.

India quickly emerged as a prime candidate. Besides a large skilled workforce, its government offers incentives to boost manufacturing. With its economic growth and improving infrastructure, India promises a scalable alternative to China.

The Latest on Export and Manufacturing Shifts

By 2025, India’s share of iPhone production has jumped sharply — from just 5% two years ago to nearly 15% now. Apple aims for India to supply almost half of all iPhones by 2026. Tata, with its strong local presence and growing manufacturing capacity, has become Apple’s go-to partner for this shift.

Exports from Indian factories reached a record $7.5 billion from April through July this year alone, showing just how serious Apple is about this move. This transition isn’t just about cost savings; it’s about building supply chains that can withstand trade wars, pandemics, or political shifts.

Apple’s shift away from China is a clear response to past shocks and present realities. It’s a strategic move to protect the production of its flagship product and keep its global operations running smoothly—even when the unexpected happens.

For more on how Apple’s production is evolving outside China, see this recent Reuters report on Apple’s India pivot. And you can learn about the broader changes in Apple’s supply chain from Supply Chain Digital’s coverage.

Tata’s Rise: From Local Player to Apple’s Powerhouse

Tata’s journey from a regional electronics player to a key partner in Apple’s global supply chain is nothing short of remarkable. Over just a couple of years, Tata Electronics has transformed India’s role in iPhone production, turning the country into a vital hub that challenges China’s historic dominance. This shift has been backed by significant increases in exports, strategic factory acquisitions, and strong government incentives. Let’s take a closer look at how Tata achieved this leap.

Huge Export Growth and Factory Takeovers

The numbers tell the real story of Tata’s surge. By mid-2025, India exported a record $7.5 billion worth of iPhones between April and July alone. Tata Electronics is the driving force behind this expansion, as the company now commands about 35% of India’s iPhone production share, making it one of Apple’s largest manufacturing partners globally.

In a bold move, Tata acquired major stakes in two key assembly units earlier run by Wistron and Pegatron. These takeovers rapidly expanded Tata’s manufacturing footprint, boosting capacity and allowing faster product ramps. As a result, India is now building all four models of the iPhone 17 series ahead of their official launch—a first for any country outside China.

This shift is critical to Apple’s strategy. Tata’s plants, including those in Karnataka and Tamil Nadu, now manufacture versions ranging from the base iPhone 17 to the high-end iPhone 17 Pro Max. These factories are modernized with advanced automation and quality control systems, enabling Tata to handle a diverse product line and high volumes efficiently. With Tata set to handle up to half of India’s iPhone output by 2026, this represents a substantial change in global production dynamics.

Government Support and Industry Growth

Tata’s rise wasn’t just about business moves; it’s tightly linked to India’s proactive manufacturing policies. The Indian government has rolled out a range of incentives to encourage local electronics production, including subsidies for new manufacturing facilities, streamlined approval processes, and support for infrastructure development.

One major policy focus is increasing “local value addition” in electronics. This means parts and components that were once imported are now made or assembled within India, contributing directly to export gains and reducing dependence on foreign suppliers. The government’s emphasis on electronics manufacturing under programs like the Production Linked Incentive (PLI) scheme has helped offset setup costs for companies like Tata, encouraging faster capacity growth.

India’s electronics policy encourages:

• Faster capital approvals for manufacturing projects
• Financial support for large-scale electronics assembly
• Development of supplier ecosystems within India to cut imports
• Creating jobs with skilled labor trained for high-precision technology assembly

This environment has allowed Tata to scale quickly, while balancing quality and cost-effectiveness in Apple’s supply chain. The alignment between Tata’s capabilities and India’s policy pushes makes the country an increasingly attractive alternative to China for Apple.

For further understanding of Tata’s role and the policy framework supporting India’s expansion as a manufacturing hub, the detailed Times of India feature on Tata’s rise with Apple offers great insight and specifics.

Photo by Bachir Chouhat on Pexels

Tata’s Expanding Role in Global Tech Manufacturing

Tata is rapidly reshaping India’s position as a major player in global tech manufacturing, especially for Apple. The company’s swift moves to acquire key assembly facilities and ramp up production have not only boosted India’s share in iPhone manufacturing but have made the country globally competitive in the electronics sector.

Tata’s Rapid Growth in iPhone Component Supply and Exports

In 2025, Tata Electronics controls about 35% of India’s iPhone production, a significant slice behind Foxconn’s larger share. From April to July alone, India exported iPhones worth $7.5 billion, marking a sharp rise compared to previous years. Tata’s factories accounted for nearly 37% of India’s iPhone exports during this period — about 7.5 million devices. This surge is no accident. By acquiring Wistron’s plant and consolidating stakes in Pegatron’s facilities, Tata secured critical infrastructure, enabling it to scale production rapidly across multiple locations including Tamil Nadu and Karnataka.

This growth is fueling India’s reputation as a tech hub capable of handling sophisticated electronics manufacturing, not just simple assembly work. The company’s efforts go beyond assembly lines; Tata is increasingly involved in making parts and components locally, reducing India’s dependency on imports. This shift strengthens supply chains and cuts production costs, further enticing Apple and other tech giants to increase India’s role in their global operations.

Shaping a Competitive Edge Beyond China

Tata’s expanding footprint is a key piece of Apple’s strategy to diversify production away from China. The majority of India-made iPhones (between 77% and 89%) are exported to the United States, helping Apple sidestep US tariffs on Chinese imports. The scale and quality of Tata’s output make India an important alternative manufacturing base capable of backing Apple’s large volumes for the global market.

Beyond Apple, Tata is also widening its client base, manufacturing components and products for other tech heavyweights like Microsoft and Dell. This diversification shows Tata’s ambition to be a broad supplier in the electronics industry, not just a single-company partner. Such moves reduce risks for Indian manufacturing and contribute to developing a robust supplier ecosystem.

The Numbers Tell the Story

Tata’s push, supported by strong government incentives like the Production Linked Incentive program, is boosting India’s global competitiveness by simplifying factory expansions and driving local supplier development.

Comparing Tata to Foxconn

While Foxconn remains the larger manufacturer in India with around 52-65% of iPhone production share, Tata’s growth trajectory is impressive. Tata has carved a distinct role by focusing heavily on quality and local supply chain integration. This not only helps Apple scale but also increases the resilience of the global supply chain by reducing overdependence on any single supplier or country.

Both companies are crucial to Apple’s plans, with Tata positioned as the fastest-growing Indian partner enhancing India’s competitiveness on the global electronics stage.

For anyone following Apple’s manufacturing pivot, Tata’s progress signals more than just shifting factories. It’s about building deeper supply chains and manufacturing capabilities that rival China’s historic dominance. Learn more about Tata’s role in Apple’s manufacturing strategy on Times of India’s coverage.

Photo by Tiger Lily on Pexels

Conclusion

Tata’s rise as Apple’s top Indian partner is reshaping global iPhone manufacturing. By expanding facilities, boosting exports, and integrating local supply chains, Tata is helping Apple cut dependence on China while scaling production for key markets like the US. This partnership benefits Apple with more stable costs and a diversified supply chain, offers Tata a chance to grow as a global tech player, and pushes India into the spotlight as a major manufacturing hub.

Challenges remain, including stiff competition from Vietnam and Thailand, and the complex task of matching China’s deep ecosystem. Still, Tata’s rapid growth signals a promising future. As Apple continues to increase production in India, the country’s role will only strengthen, setting the stage for long-term growth and new opportunities in tech manufacturing worldwide.