In recent times, Tamil Nadu has seen a surge in electronics exports, primarily due to the rise in iPhone exports | (Photo: Shutterstock)
Jabil Inc, a US-based multinational contract manufacturer for Apple, will set up an electronics manufacturing plant in Tiruchirapalli, Tamil Nadu, at an investment of Rs 2,000 crore, creating 5,000 jobs. With this, the state is likely to get its fourth Apple supplier, after Foxconn, Pegatron and Tata Electronics.
Jabil is also a major supplier to Cisco and HP. Earlier this year, Jabil started manufacturing AirPod components (plastic bodies) for Apple in India. Jabil’s main export destinations from India are now Vietnam and China. Its 858,000-square-foot plant in Pune employs about 2,500 people. The deal was finalized on Tuesday as part of Prime Minister MK Stalin’s visit to the United States.
“A major investment of Rs 2,000 crore in Tiruchirapalli by Jabil, a global leader in EMS. This will create 5,000 jobs and establish a new cluster for electronics manufacturing,” Stalin posted on Platform X. Additionally, Rockwell Automation is expanding its manufacturing with an investment of Rs 666 crore in Kanchipuram, which will add 365 jobs. An MoU has also been signed with Autodesk to skill youth and boost SMEs and startups, strengthening our overall industrial ecosystem.
Tamil Nadu has seen a surge in electronics exports in recent times, mainly due to the rise in iPhone exports. The state is now India’s top electronics exporter, with exports reaching $9.56 billion in FY24, up 78% from $5.37 billion in FY23, and well ahead of Karnataka and Uttar Pradesh.
According to industry experts, one of the main reasons for the surge in exports is the China+One strategy adopted by global majors like Apple, following which their contractors like Foxconn and Pegatron, and suppliers like Salcomp, contributed to Tamil Nadu’s emergence as the country’s electronics hub last year. The China+One strategy, coined in 2013, is a global business strategy where companies avoid investing solely in China and diversify their operations to alternative destinations.
Apple exported phones worth Rs 34,089 crore in the first four months of the current fiscal. While Apple is trying to shift a major part of its supply chain to India through the ‘Make in India for the World’ initiative, it is also working on expanding its domestic market. In 2023-24, the company’s domestic market was valued at Rs 67,000 crore.
First published: September 10, 2024 | 7:36 am IS
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