^{Photo: The Economic Times}

In a major step toward expanding India’s role in global electronics manufacturing, Tata Electronics has reportedly acquired the Indian operations of Chinese precision engineering firm Justech for nearly $100 million, according to industry insiders familiar with the deal.

The acquisition marks a pivotal moment in Tata’s aggressive strategy to deepen its footprint in Apple’s supply chain and elevate India as a key iPhone manufacturing destination. The move comes as Apple works to diversify its global production, aiming to assemble all iPhones sold in the U.S. within India by the end of 2026.

Strategic Push Toward Localized Apple Production

The deal with Justech aligns with Apple’s broader goal of reducing its dependency on China—a strategy that has gained urgency amid geopolitical tensions, U.S.-China trade frictions, and supply chain disruptions.

Industry analysts say Apple is working to create a “highly localized and resilient supplier ecosystem” in India, with partners capable of matching the precision and scale long established in China. However, building such an ecosystem will take time. Many components, such as precision parts and microelectronics, still rely heavily on Chinese manufacturing expertise.

“Tata’s acquisition of Justech’s India unit gives them immediate access to advanced production know-how and machinery that would otherwise take years to develop domestically,” said a senior analyst at Counterpoint Research.

India’s Rising Role in the iPhone Supply Chain

Over the past two years, India’s iPhone manufacturing share has surged. According to government and industry estimates, Apple produced over $14 billion worth of iPhones in India during fiscal year 2024, accounting for about 14% of global iPhone output—a dramatic rise from just 1% in 2020.

Tata Electronics, headquartered in Hosur, Tamil Nadu, already plays a vital role in assembling iPhone enclosures and components. With the Justech acquisition, Tata can expand its precision manufacturing capabilities, directly supporting Foxconn and Pegatron, Apple’s major assembly partners in India.

Reports suggest the Indian government’s Production Linked Incentive (PLI) scheme has further accelerated this shift, making India one of the most attractive destinations for high-value electronics production.

The Bigger Picture: Apple’s Diversification Strategy

Apple’s diversification push is not limited to India. The company has expanded operations in Vietnam and Malaysia, but India remains its biggest long-term bet due to its vast labor pool, policy incentives, and growing technological base.

Still, challenges remain. Industry experts caution that local suppliers must meet Apple’s stringent quality benchmarks—something that took Chinese suppliers nearly a decade to perfect. Tata’s acquisition of Justech could help bridge that gap by integrating advanced precision engineering systems and experienced technical staff into its operations.

Looking Ahead

With this acquisition, Tata Electronics strengthens its position not only as a key player in Apple’s global supply network but also as a symbol of India’s emergence as a manufacturing powerhouse.

As Apple eyes a future where iPhones are designed in California but built in India, moves like this underline a broader trend: the rebalancing of global manufacturing away from China toward markets like India, where companies like Tata are seizing the moment.