A fire at Tata’s iPhone component plant in Tamil Nadu, India, has led to the facility’s indefinite closure. The incident may force Apple to rely more on China to meet iPhone production demands. The fire occurred on September 28, 2024, and has caused significant disruptions, particularly for iPhone 14 and iPhone 15 models.
India’s Role in iPhone Production
Tata’s plant was responsible for producing iPhone back panels. It played a key part in Apple’s production efforts in India. Analysts predict that the fire could result in a shortfall of 1.5 million iPhones during India’s festive season. This comes at a critical time for Apple, as the company aims to source 20-25% of its iPhone production from India by the end of 2024.
Apple May Turn to China
The fire has raised concerns about Apple’s ability to meet demand. Although Apple holds an eight-week stock of iPhone back panels, further delays may force the company to turn to its suppliers in China. To fill the gap, Apple may need to add shifts or set up extra assembly lines in Chinese factories.
Impact on India’s Manufacturing Ambitions
The fire also highlights the challenges India faces as it tries to become a global electronics manufacturing hub. The Indian government has promoted its Make in India initiative to attract foreign companies, but incidents like this raise concerns about infrastructure and safety standards.
The fire at the Tata plant has disrupted Apple’s supply chain. As a result, the company may need to turn to China to maintain its iPhone production targets. Addressing these challenges will be key for India’s growth as a manufacturing hub.
