Editor’s Note
This article highlights Tata Electronics’ significant expansion within India’s electronics and semiconductor sector, a strategic move supported by government initiatives. The company’s primary challenge is a shortage of skilled personnel, leading to a major upcoming recruitment drive.
Tata Electronics is expanding its electronics and semiconductor business in India. The Tata Group company is rapidly emerging in India’s electronics and semiconductor sector. The government is promoting semiconductors, and Tata Electronics is among the companies entrusted with the responsibility to manufacture them. The company’s machinery and orders are ready; the only shortfall is in manpower. Consequently, Tata Electronics is set to hire a large number of employees.
Tata Electronics is rapidly expanding its Hosur plant in Tamil Nadu. Currently, the plant has 60,000 employees, and the company plans to increase this number to 75,000 within the next six months. This will bring the company’s total headcount in India on par with that of Foxconn. This growth is primarily driven by Apple’s rapidly increasing production in India. In the fiscal year 2024-25, Tata Electronics recorded revenue of Rs 66,601 crore, which is nearly 17 times the Rs 3,752 crore from the previous year. These figures have emerged from Tata Sons’ annual report.
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In the first six months of the current fiscal year, Apple’s iPhone exports from India surpassed $10 billion (approximately Rs 85,000 crore), a 75% increase from $5.71 billion in the same period last year. Tata Electronics, along with Foxconn and Pegatron, has become Apple’s largest supplier in India.
Despite rapid expansion, the company is facing a severe shortage of skilled human resources. According to sources:
This problem is not unique to Tata Electronics but affects the entire electronics manufacturing sector. The skill gap is estimated to have increased to 16.9%. Every year, a shortage of over 2 million additional employees is being observed. Meanwhile, while 12 million jobs are expected to be created by 2027-28, there could be a shortage of 8 million employees, and 10 million may face a skill gap.
Attrition rates among new employees are also high as they take time to adapt to the new work culture. Additionally, companies are investing less in training shop floor technicians. The migration of electrical engineers to the IT sector is another major problem.
Apple’s largest contract manufacturer, Foxconn, is also expanding rapidly in India. Its Devanahalli plant in Karnataka currently has about 25,000 employees, with a target to reach 30,000 by next year.