According to T. R. B. Rajaa, Tamil Nadu’s Minister for Industries, Investment Promotion, and Commerce, the state’s excellent infrastructure, talent pool, and governance are luring Apple suppliers and ecosystem companies to engage in component manufacture.
State Incentives Boost Electronics Manufacturing
To increase the production of electronic components, the state, which already has a number of suppliers for Apple ecosystem components, launched the Tamil Nadu Electronics Components Manufacturing Scheme in April.
The government is providing state-level incentives that are equivalent to the advantages of the Union Ministry of Electronics and Information Technology’s Electronics Component Manufacturing Scheme in an effort to draw in more companies. This will provide competitive support for companies establishing operations in the state.
INR 30,000 Cr Scheme to Generate 60,000 Jobs
The project intends to generate approximately 60,000 new jobs and draw in investments totalling INR 30,000 crore. In an exclusive interview with Moneycontrol, Rajaa stated that bringing more of the Apple ecosystem to Tamil Nadu was his top aim when he took over in 2023, and he was successful in doing so during the year.
Now it’s the other way around: as a result of the globalisation of the “Brand Tamil Nadu,” more Apple suppliers are contacting us. He went on to say that his government knew that this state had those kinds of skills. He said that people shouldn’t think of India when they think of Tamil Nadu; they should think of Tamil Nadu separately.
This state is distinct due to its excellent infrastructure, skill pool, and greatly improved government. One of Apple’s major international suppliers, Foxconn, currently produces iPhones in Tamil Nadu for export to markets throughout the world, mainly the US. An important hub for Apple’s supply chain for manufacturing in India is now Tamil Nadu.
Major Apple Suppliers Operating in Tamil Nadu
Along with Foxconn, the state is home to important suppliers, including Jabil, which is establishing a sizable new facility in Trichy; Tata Electronics, which operates substantial iPhone and component facilities; and Pegatron, which is currently controlled by Tata Electronics. Other important participants are ON Semiconductor, Lingyi iTech (precision components), Corning (Gorilla Glass near Sriperumbudur), and Salcomp (chargers and components).
Supported by special economic zones and government incentives, these businesses are mostly based in Hosur, the Sriperumbudur-Oragadam-Kancheepuram corridor, and recently Tiruchirapalli.
Tamil Nadu’s Role in Apple’s China+1 Strategy
According to analysts, the environment for electronics manufacturing in Tamil Nadu is still expanding quickly and is essential to Apple’s plan to diversify its supply chain outside of China. In FY2025, Tamil Nadu’s electronics exports reached a record high of $14.65 billion, or 41.2 percent of India’s total electronics exports. Through the program, it hopes to increase electronics exports from the current $14.6 billion to $50 billion over the course of the next three to four years.
Future Plans: From Glass to Li-Ion Cells
The government intends to localise the entire supply chain and venture into more intricate and valuable segments of the electronics value chain with the new program. The state will use the program to encourage the production of various components, including Li-ion cells, HDI/Flexi PCBs, sensors, camera/display modules and sub-assemblies, and SMD passive components.
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