Apple's supplier Jabil to invest ₹2,000 cr in Tamil Nadu, aims to create 5,000 jobs

Jabil Inc, American contract manufacturer for Apple, is set to establish a new electronics manufacturing facility in Tiruchirapalli, Tamil Nadu, with an investment of ₹2,000 crore which is expected to create jobs for 5,000 people. This development will make Jabil the fourth Apple supplier in the state, joining the ranks of Foxconn, Pegatron, and Tata Electronics.

This new deal was finalised during the U.S. visit of Tamil Nadu's Chief Minister (CM), M.K. Stalin, on Tuesday. The CM announced the investment on X, highlighting the ₹2,000 crore project and the creation of 5,000 jobs in Tiruchirapalli. “A significant investment of ₹2000 crores at Tiruchirapalli by Jabil, a global leader in EMS. This will create 5,000 jobs and create a new cluster for electronics manufacturing. Rockwell Automation expanding its manufacturing with a ₹666 crore investment in Kanchipuram, adding 365 jobs. MoU with Autodesk to skill youth and boost MSMEs and startups, strengthening our overall industrial ecosystem,” Stalin shares via X.

In addition to Apple, Jabil also supplies Cisco and HP. The company currently operates an 8,58,000-square-foot facility in Pune, employing about 2,500 workers, as per the reports. Earlier this year, Jabil started producing plastic bodies for AirPods in India, with key export markets being Vietnam and China.

Tamil Nadu recently experienced a surge in electronics exports, largely driven by iPhone shipments. The state now leads India in electronics exports, reaching $9.56 billion in FY24, a 78% increase from $5.37 billion in FY23.

These exports represent approximately 33% of the nation's total, exceeding the state's $9 billion target. In the first four months of FY24, Apple reported phone exports worth ₹34,089 crore, while the company’s domestic market was valued at ₹67,000 crore for 2023-24, according to reports.

One of the key reasons for the rise in exports, according to industry experts, is the China-Plus-One strategy adopted by global giants like Apple. Following this, its contractors, such as Foxconn and Pegatron, along with suppliers like Salcomp, helped position Tamil Nadu as India's electronics hub last year. The China-Plus-One strategy, coined in 2013, is a global business strategy where companies diversify their investments by expanding operations beyond China to other countries.

In December 2023, it was reported that the Tata Group had planned to build one of India's largest iPhone assembly plants in Hosur, Tamil Nadu. This move was seen as part of Apple Inc.'s strategy to boost manufacturing in South Asia. According to the report, the facility was expected to have around 20 assembly lines and employ 50,000 workers within two years.