New Delhi | January 3, 2026 | In a major boost to India’s electronics manufacturing ecosystem, Apple has taken a significant step by forming an anchor vendor team in the country. The company has partnered with five major firms that will together invest ₹30,537 crore, a move expected to generate over 27,614 direct jobs, apart from thousands of indirect employment opportunities across the value chain.
The initiative is aimed squarely at strengthening the domestic supply of electronic components critical for iPhone manufacturing. Beyond improving the cost structure of iPhones made in India, Apple’s broader objective is to position the country as a key pillar in its global supply chain, reducing dependence on a limited set of overseas manufacturing bases.
Major contribution under the ECMS scheme
The five anchor vendors together account for nearly 73% of the ₹41,863 crore investment approved under the Electronics Components Manufacturing Scheme (ECMS) implemented by MeitY. The scheme offers incentives to eligible companies for large-scale investments, with the aim of building a robust domestic components ecosystem.
According to government sources, companies aligned with Apple will not only supply components to Apple but will also cater to other global and domestic customers, thereby enhancing the competitiveness of India’s electronics industry and deepening local manufacturing capabilities.
Who are the anchor vendors
Companies approved under the ECMS include a mix of Indian groups and global majors. Among Indian firms, Tata Electronics, Motherson Electronic Components, and Hindalco feature prominently.
The international players include Yuzhan Technology, part of the Foxconn group, and ATL Battery Technology India Ltd, a subsidiary of Japan’s TDK Group. Apple is also evaluating additional suppliers, and further announcements are expected in the next tranche of approvals by MeitY.
Focus on aluminium enclosures and batteries
Apple is placing particular emphasis on strengthening the supply chain for iPhone aluminium enclosures—the phone’s outer body—with the long-term goal of making India a global manufacturing hub for this component. At present, Tata Electronics supplies a limited portion of iPhone enclosures domestically, a share that is set to rise significantly in the coming years.
As part of this plan, Hindalco has been roped in to set up an aluminium extrusion plant involving an investment of around ₹449 crore. Separately, ATL Battery Technology will invest approximately ₹2,922 crore to manufacture lithium-ion batteries for smartphones at its facility in Noida.
Big bets by Foxconn and Motherson
In addition to Tata Group investments, Foxconn and Motherson are together committing nearly ₹27,166 crore towards new factories and expansion projects in India. These investments are expected to support not only iPhone assembly but also the local production of several high-value components, further deepening Apple’s manufacturing footprint in the country.
Targeting higher value addition
Officials from the government and industry say these investments could help raise value addition in smartphone manufacturing in India from the current 15–20% to as much as 35% over time. Higher local value addition would reduce import dependence, boost exports, and strengthen India’s position in the global electronics manufacturing landscape.
Experts view Apple’s anchor vendor strategy as closely aligned with the government’s Make in India push and the global China+1 diversification trend. By nurturing an anchor-led ecosystem, Apple aims to build a resilient manufacturing base in India—one capable of supporting global demand and establishing the country as a long-term electronics manufacturing hub.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
