MC EXCLUSIVE Apple suppliers flock to Tamil Nadu as state emerges key hub for electronics component manufacturing

Rajaa stressed that Tamil Nadu evaluates investments not just by their size, but by their quality and strategic relevance.

Apple suppliers and ecosystem companies are increasingly turning to Tamil Nadu to invest in component manufacturing, attracted by the state’s superior infrastructure, talent pool, and governance, according to T. R. B. Rajaa, Tamil Nadu’s Minister for Industries, Investment Promotion and Commerce.

The state, which already hosts several Apple ecosystem component suppliers, introduced the Tamil Nadu Electronics Components Manufacturing Scheme in April to further boost electronic component production. To attract more firms, the government is offering state-level incentives that match the benefits under the Union Ministry of Electronics and Information Technology’s Electronics Component Manufacturing Scheme, ensuring competitive support for businesses setting up operations in the state.

The initiative aims to attract investments worth Rs 30,000 crore and create around 60,000 new jobs.

“When I took over in 2023, my first priority was to bring more of the Apple ecosystem to Tamil Nadu, and we succeeded over the year. Now, it’s the other way around: more Apple suppliers are approaching us because the ‘Brand Tamil Nadu’ has gone global,” Rajaa told Moneycontrol in an exclusive interview.

“They know that such capabilities exist in this state, and it’s not something which you should think of when you think India—you need to think separately when you're thinking of Tamil Nadu,” Rajaa said. “This is a state which is unique, with superior quality infrastructure, superior quality of talent, and much superior governance.”

Foxconn, one of Apple’s key global suppliers, already manufactures iPhones in Tamil Nadu, which are exported to international markets, primarily the United States. Tamil Nadu has emerged as a central hub for Apple’s India manufacturing supply chain. In addition to Foxconn, the state is home to major suppliers like Pegatron (now owned by Tata Electronics), Tata Electronics itself (which runs extensive iPhone and component facilities), and Jabil, which is setting up a major new plant in Trichy.

Other key players include Salcomp (chargers and components), Corning (Gorilla Glass near Sriperumbudur), Lingyi iTech (precision components), and ON Semiconductor. These companies are primarily concentrated in the Sriperumbudur-Oragadam-Kancheepuram corridor, Hosur, and now Tiruchirapalli areas supported by special economic zones and state incentives.

Analysts said Tamil Nadu’s electronics manufacturing ecosystem continues to grow rapidly, playing a vital role in Apple’s strategy to diversify its supply chain beyond China.

“In electronics, we have been the unmatched giant, 41 percent of India’s share. We are absolute hands-down giants, and we're growing. We don't want to rest on our laurels. We're extending our lead as we speak. I just came off a visit to Japan, and more hardcore components are coming in,” the minister said.

Tamil Nadu recorded its highest-ever electronics exports of $14.65 billion in FY2025, accounting for 41.2 percent of India’s total electronics exports. Through the scheme, it aims to reach $50 billion in electronics exports in the next three to four years from the current level of $14.6 billion.

With the new scheme, the government plans to expand into more complex and high-value areas of the electronics value chain and localize the entire supply chain.

Through the scheme, the state will promote component manufacturing such as camera/display modules and sub-assemblies, sensors, HDI/Flexi PCBs, Li-ion cells, SMD passive components, among others.

“When I talk about the electronics share, that also has a diversity, equity and inclusion (DEI) statement at the back. Look at the number of women working in the electronics sector—it’s largely driven by women. That's equal opportunity, growth everywhere, not just growth in one sector, but also making sure that all parts of the population benefit,” he added.

Rajaa stressed that Tamil Nadu evaluates investments not just by their size, but by their quality and strategic relevance.

“We don't gauge our investors by the quantum of investment, but the quality. Even a Rs 100 crore investment into a single component, which will excite the local ecosystem, is more important to me than a Rs 10,000 crore generic investment. That’s what brings real value,” he said.