Relevant sources revealed that Apple and its suppliers plan to produce more than 50 million iPhones per year in India in the next two to three years, and the number will increase thereafter. If the plan comes to fruition, India will account for a quarter of global iPhone production.In order to strengthen its dominance in the supply chain, American technology giant Apple has been seeking to diversify its industrial chain. Attracted by India's lower labor costs and various incentives, Apple is extremely ambitious in establishing production capacity in India.

Against this background, India's largest conglomerate Tata Group plans to build one of the country's largest iPhone assembly plants.The move is expected to accelerate Apple's manufacturing expansion in India.

According to informed sources, the mediaTata Group wants to build a factory in Hosur in the southern Indian state of Tamil Nadu. The plant is likely to have about 20 assembly lines and employ 50,000 workers within two years, with the goal of being operational within 12 to 18 months.

The new factory is expected to start production just as previous fiscal incentives backed by the Indian government expire, and Apple and Tata are likely to press the Indian government to provide subsidies for the new factory.

The establishment of the new factory will help Apple achieve its goal of strengthening "Made in India" and strengthen the cooperative relationship between Apple and the Tata Group. Tata has acquired an iPhone factory from Wistron in Karnataka, a state neighboring Tamil Nadu.

The size of the new factory will be at a medium level among global iPhone factories. It will likely be larger than the factory Tata Group acquired from Wistron, which employs more than 10,000 people, but much smaller than Foxconn's largest factory in China, which employs hundreds of thousands.

Tata Group has also taken other steps to strengthen its business cooperation with Apple. The company has accelerated hiring at its existing factory in Hosur, which produces iPhone frames or metal casings. Tata also said it will open 100 retail stores specializing in Apple products. Apple has opened two official direct retail stores across India and plans to open three more.

Apple works to diversify supply chain

Indian Prime Minister Narendra Modi's production-related subsidies have spurred major Apple suppliers such as Foxconn and Pegatron to expand operations in India. This helped Apple assemble more than $7 billion worth of iPhones in India last fiscal year, increasing the market share of iPhones made in India to about 7%.

In August this year, media reports stated that Apple planned to transfer at least 20% of iPhone production to India. Indian government officials said in September that Apple plans to more than five-fold its output in India to $40 billion in the next five years.

Apple wants batteries for its latest iPhones to be made in India, media reported on Wednesday, in the latest effort by the U.S. technology giant to diversify its global supply chain.

Beyond India, Apple is diversifying its business by working with assembly and component manufacturing partners in Thailand, Malaysia and elsewhere.