Hyderabad, May 6, 2025: In a strategic move to strengthen its global supply chain and deepen its manufacturing roots in India, Jabil Inc., a key supplier to Apple Inc., is preparing to significantly scale up operations by establishing two additional production units in the country over the next three to four years. The U.S.-based electronics manufacturing services giant is set to invest between $250 million and $275 million (approximately ₹2,100–₹2,300 crore) in this expansion drive.
Currently, Jabil operates two manufacturing units in Pune, Maharashtra, where it produces plastic enclosures for Apple’s AirPods. These facilities also contribute to the production of critical electronic components, including those used for Wi-Fi, NFC, RFID, camera optics, and power electronics. The AirPods components produced here are exported to Apple’s final assembly locations in China and Vietnam.
The planned expansion includes a new unit in Tamil Nadu, where the company has signed a memorandum of understanding with the state government to set up an electronics manufacturing facility in Tiruchirappalli (Trichy). This facility is expected to attract a total investment of ₹2,000 crore and generate direct employment for approximately 5,000 individuals.
This development is part of a larger global strategy by Apple to reduce its dependence on China by diversifying its supply chain across Asia, with India emerging as a key player. The growing geopolitical tension and pandemic-induced disruptions have prompted Apple and its suppliers to explore alternative manufacturing destinations. India, with its cost advantages, government incentives, and a large skilled labor force, has become an attractive option.
In line with this shift, Apple has already increased its production footprint in India, with nearly 14% of global iPhones produced in the country in FY24. Analysts forecast this figure to rise to 25% by 2027. The move is not only about cost-efficiency but also about tapping into India’s rapidly growing consumer market.
The new Jabil facilities are expected to broaden the scope of products manufactured in India. While current production focuses on AirPods casings, the company is reportedly planning to manufacture plastic enclosures for older iPhone models, chargers, and potentially components for other Apple products like the Apple Watch and Mac computers.
Jabil’s presence in India dates back over a decade, but its involvement in Apple’s hardware ecosystem took a significant turn when it began manufacturing AirPods components in Pune in early 2023. Since then, India’s role in the production of Apple products has steadily expanded, supported by a range of state and central government initiatives aimed at boosting local manufacturing.
One such initiative is the government’s flagship ‘Make in India’ program, which encourages multinational corporations to set up manufacturing bases in the country. This has been further strengthened by Production-Linked Incentive (PLI) schemes, which offer financial rewards to companies meeting specific investment and output targets.
Tamil Nadu, in particular, has emerged as a major electronics manufacturing hub. With its robust infrastructure, industrial policy, and skilled workforce, the state has attracted several of Apple’s key suppliers, including Foxconn, Pegatron, Tata Electronics, and Salcomp. Jabil’s proposed facility in Trichy adds another layer to this growing ecosystem, further reinforcing Tamil Nadu’s reputation as a global electronics assembly powerhouse.
The decision to expand comes at a time when the Indian electronics sector is witnessing unprecedented momentum. Demand for consumer electronics, electric mobility solutions, and connected devices is surging. Jabil’s investment is not just about serving Apple’s supply chain; the company also aims to leverage its Indian facilities to cater to the growing demand in the domestic market across various verticals, including home appliances, electric vehicles, and industrial electronics.
In terms of job creation and skill development, the impact of Jabil’s expansion could be substantial. With new facilities, thousands of direct and indirect jobs are expected to be created. This aligns with India’s push to create employment opportunities in high-tech manufacturing and reduce its dependence on imports.
Experts suggest that the trend of global electronics companies increasing their investments in India is likely to accelerate, particularly as companies seek resilience and redundancy in their supply chains. India’s ability to offer both a production base and a consumer market is increasingly becoming a compelling proposition.
Jabil’s renewed commitment to India sends a strong signal to the global business community about the country’s manufacturing capabilities and the government’s pro-business policies. As Apple continues to explore new avenues for production diversification, India is poised to play a central role in the brand’s long-term strategy.
