The Tata Group would be setting up a smartphone component manufacturing plant in Hosur, Tamil Nadu. The components manufacturing plant would be set up in an industrial complex for an estimated investment of rupees 5,000 crores. The Tata group would be operating the manufacturing plant under its subsidiary company Tata Electronics. 

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Tamil Nadu Industrial Development Corporation Ltd.(TIDCO) has allotted nearly 500 acres of land to Tata group for setting up the components manufacturing plant. 

Tata would be manufacturing components for Apple products in this plant. Apple would also be looking to diversify its production supply units instead of just concentrating on China to fulfill its supply requirements. 

Apple currently works with Foxconn, Wistron & Pegatron for the complete assembly of Apple products. The plant being set up by Tata Group would be focusing on manufacturing components for Apple products in India. It is believed that the Tata unit would have an estimated staff strength of 18,000 people, and up to 90% of the staff would be women. 

This step taken by Tata Group would definitely allow India to strengthen its electronics manufacturing base and reach self-sufficiency in manufacturing mobile handsets. 

The Government of India has also launched a production linked incentive scheme to boost electronics manufacturing in the country. As per the scheme, up to 4% to 6% incentives would be given to companies manufacturing electronics components and mobile smartphones. 

Tamil Nadu and Karnataka wanted the Tata Group to set up the manufacturing plant in their respective states, but Tamil Nadu successfully sealed the deal with Tata Group.

The Government of Tamil Nadu had announced the Tamil Nadu Electronics Hardware Manufacturing Policy 2020. Under this ambitious program, the state of Tamil Nadu aims to contribute up to 25% of India’s total electronics export. Favorable policies like this helped Tamil Nadu to seal the deal with Tata Group. The presence of other already existing companies such as Foxconn, Flex, Samsung, Dell, Nokia, Motorola, etc., makes Tamil Nadu an ideal location to set up a component manufacturing hub.