Tata Electronics developing high-precision machines to build iPhone casings

Tata Electronics, having emerged as a key player in manufacturing enclosures for Apple iPhones in India, is currently focused on internally designing and developing “very sophisticated” and complex high-precision machines producing the iPhone casings.

According to a report in The Economic Times (ET), the company has partnered with two companies — one in Bengaluru and one in Pune — to enhance its capabilities and intends to eventually export these complex machines. Previously, the Tatas sourced them from China.

The machinery is suitable for integration into the production lines of contract manufacturers serving global corporations such as Apple. This initiative is anticipated to significantly boost the government’s aim of achieving $300 billion in electronics exports by 2025.

The ET quoted a source as saying, “The Tata Group is testing these machines in a staged manner at their Hosur facility. The part of the objective is to grow more of its local capability because the company is not just looking to build enclosures, it wants to develop the ecosystem in the country. These machines are just one of the many inputs that go into making a component or an enclosure that the company is looking at to reduce its exclusive dependence on certain parts.”

Ajai Chowdhry, co-founder of HCL, said any company looking to make phones in India needs casing.

The ET quoted Chowdhry as saying, “Everybody wants casings. If Tata Group is able to do import substitution and they’re able to make these machines in India, it will create an industry because so many people want casings. Anybody who wants to make a phone or a tablet in India needs casings and if they’re able to adhere to Apple’s stringent standards, it would be a high-quality machine in itself.”

As part of its “global strategy,” Tata Electronics aims to diminish reliance on specific low-tech components before transitioning to more intricate ones. This effort seeks to diversify and mitigate risks associated with global supply chain disruptions while simultaneously strengthening the manufacturing landscape within the country.

The earlier-quoted source said although computer numerical control (CNC) machines are widely utilised across various sectors in India, domestic manufacturers currently lack the capability to employ CNC machines for precision components. “It is a part of everybody’s priorities — the government, manufacturers like the Tata Group, and the companies themselves to diversify and de-risk the supply chain,” the source told ET.

First Published: Apr 26 2024 | 12:01 PM IST