Stalin signs deal with Jabil to set up fourth Apple manufacturing unit in TN

CHENNAI: M.K. Stalin, Tamil Nadu Chief Minister, currently visiting the U.S., has signed a deal to establish the state’s fourth manufacturing unit that will supply Apple devices, including iPhones.

According to reports from the U.S., Jabil Inc., a U.S.-based multinational contract manufacturer for Apple, will establish a unit in the Thiruchirapalli district at a cost of Rs2,000 crore, creating 5,000 jobs.

The deal was finalized on Tuesday, September 9.

The proposed unit will be the fourth Apple supplier in the state, following Foxconn, Pegatron, and Tata Electronics.

Stalin wrote on X: “A significant investment of Rs2,000 crore in Tiruchirapalli by Jabil, a global leader in EMS. This will create 5,000 jobs and establish a new cluster for electronics manufacturing.”

Jabil is also a major supplier to Cisco and HP. Earlier this year, Jabil began manufacturing AirPod components—specifically the plastic bodies—for Apple in India.

The major export destinations for Jabil from India are Vietnam and China.

Its 858,000 sq ft facility in Pune employs around 2,500 people.

More deals signed

Additionally, the Chief Minister signed a deal with Rockwell Automation to expand its manufacturing facilities in Kanchipuram with an investment of Rs666 crore, creating 365 jobs. Furthermore, he signed a memorandum of understanding with Autodesk to skill youth and boost MSMEs and startups, thereby strengthening the overall industrial ecosystem.

In recent times, Tamil Nadu has seen a spike in electronics exports, primarily driven by the rise in iPhone exports. The state is now the leading exporter of electronics, with exports reaching $9.56 billion in FY24—up 78 percent from $5.37 billion in FY23, and far ahead of Karnataka and Uttar Pradesh.

Electronics hub

According to industry experts, one of the key reasons for the rise in exports is the China-Plus-One strategy adopted by global majors like Apple. This strategy prompted contractors like Foxconn and Pegatron, as well as suppliers like Salcomp, to contribute to Tamil Nadu’s emergence as the country’s electronics hub last year.

Coined in 2013, China-Plus-One is a global business strategy where companies avoid investing solely in China and diversify their operations to alternative destinations.

Apple exported phones worth Rs34,089 crore in the first four months of the current financial year. While Apple is shifting a significant portion of its supply chain to India through the ‘Make in India for the World’ initiative, it is also working to expand its domestic market.

In 2023-24, the company’s domestic market was valued at Rs67,000 crore.