Apple Suppliers Flock to Tamil Nadu as Electronics Hub Emerges

• Tamil Nadu launches a scheme to boost electronics manufacturing with ₹30,000 crore investment goal.
• Major Apple suppliers expand operations, making the state a key supply chain hub.
• Electronics exports hit $14.65B; target set at $50B in 3–4 years.

As T. R. B. Rajaa, the state Minister for Industries, Investment Promotion, and Commerce said, Tamil Nadu is rapidly becoming a new preferred destination for Apple's suppliers and ecosystem companies and partners because of its infrastructure, skills, and governance. 

Recently, to further its position as a destination, the state launched the Tamil Nadu Electronics Components Manufacturing Scheme in April, targeting ₹30,000 crore in investments and provide approximately 60,000 jobs. It complies with the surrender of state-level incentives with the central government's Electronics Component Manufacturing Scheme, making it competitive for firms to manufacture in the state.

"When I took over in 2023, my first priority was to bring more of the Apple ecosystem to Tamil Nadu, and we succeeded over the year. Now, it’s the other way around: more Apple suppliers are approaching us because the ‘Brand Tamil Nadu’ has gone global", said T. R. B. Rajaa.

"They know that such capabilities exist in this state, and it’s not something which you should think of when you think India—you need to think separately when you're thinking of Tamil Nadu. This is a state which is unique, with superior quality infrastructure, superior quality of talent, and much superior governance", he added.

Currently, Tamil Nadu has several major Apple suppliers. Foxconn, which primarily manufactures and exports iPhones to the U.S., is located here as are Tata Electronics (including Pegatron), Jabil (in expansion mode in Trichy), Salcomp, Corning, Lingyi iTech, and ON Semiconductor. These companies are primarily concentrated in Sriperumbudur, Oragadam, Kancheepuram, Hosur and Tiruchirapalli - all SEZs with customized state incentives to support the sector.

Also Read: Government Identifies Key Manufacturing Sectors to Attract FDI

The State Minister said, "In electronics, we have been the unmatched giant, 41 percent of India’s share. We are absolute hands-down giants, and we're growing. We don't want to rest on our laurels. We're extending our lead as we speak. I just came off a visit to Japan, and more hardcore components are coming in".

Tamil Nadu's electronics exports reached $14.65 billion in FY2025 representing the highest amount ever - accounting for 41.2% of total India exports. Under the scheme, Tamil Nadu hopes to target $50 billion in exports in the next three to four years.

He stated, "When I talk about the electronics share, that also has a diversity, equity and inclusion (DEI) statement at the back. Look at the number of women working in the electronics sector—it’s largely driven by women. That's equal opportunity, growth everywhere, not just growth in one sector, but also making sure that all parts of the population benefit".

The focus is not just  volume, but value, and an emphasis on local production of complicated components including camera/display modules, sensors, Li-ion cells, HDI/Flexi PCBs, and SMD passive components.

Rajaa stressed that Tamil Nadu evaluates investments not on volume alone, but on strategic relevance and quality - which is consistent with Apple's goal of diversifying its supply chain that is outside China.

He added, "We don't gauge our investors by the quantum of investment, but the quality. Even a Rs 100 crore investment into a single component, which will excite the local ecosystem, is more important to me than a Rs 10,000 crore generic investment. That’s what brings real value".