Image for representation.
Credit: Reuters Photo
Chennai: US-based Jabil on Tuesday announced a significant investment of Rs 2,000 crore to set up an electronics manufacturing unit in Tiruchirapalli in Tamil Nadu, marking the entry of the sixth key contract manufacturer to Apple Inc into the state.
The investment by Jabil, which is a supplier to Apple, Cisco, and HP, will create 5,000 jobs. A memorandum of understanding was signed on Tuesday morning (IST) in Chicago, US between the state government and Jabil in the presence of Tamil Nadu Chief Minister M K Stalin.
Jabil’s entry into Tiruchirapalli is a significant win for the Tamil Nadu government’s efforts to diversify electronics manufacturing from Chennai to infuse growth into all regions of the state. Apart from Chennai, the state government is positioning Hosur as an electronics hub with the entry of home-grown Tata Electronics and Taiwan’s Delta Electronics, and now Tiruchirapalli has joined the list.
“A significant investment of Rs 2000 crores at Tiruchirapalli by Jabil, a global leader in EMS. This will create 5000 jobs and create a new cluster for electronics manufacturing,” Stalin said after the MoU was signed.
A source in the government said the fresh investment will transform Tiruchirapalli and create a new electronics cluster. “This is the first time that a major electronic manufacturing services (EMS) firm is setting shop outside Chennai,” the source added.
The new unit by Jabil marks the entry of yet another Apple Inc. supplier to Tamil Nadu, which already boasts of massive facilities owned by Foxconn, Pegatron, Tata Electronics, and Salcomp, which supplies chargers to the Cupertino-based electronics major.
Corning, which supplies finished cover glass for Apple iPhones, is building a massive facility in Sriperumbudur, while another Apple supplier Luxshare, is expected to start operations in Chennai very soon from the old Motorola factory it acquired in 2021.
Foxconn is also likely to manufacture Pixel phones and drones for Google at its Sriperumbudur facility. Tamil Nadu in 2023 emerged as the no. 1 state in the export of electronic goods and continues to hold the position by achieving a record-breaking $9.56 billion in electronics exports in 2023-2024 fiscal.