India’s Tata Electronics plays a crucial role in Apple’s strategy to diversify iPhone manufacturing outside China and is the second-largest supplier to Apple in South Asia, following Taiwan’s Foxconn.
The Tata facility under scrutiny is located in Hosur, in the southern state of Tamil Nadu, where it produces back panels and other components for iPhones. Farmers in proximity to the factory had raised concerns for several months with the Tamil Nadu Pollution Control Board, alleging that wastewater from the plant was tainting their fields and open wells.
These complaints prompted five state inspections from December 2025 to May 2026, as outlined in a previously unreported regulatory notice dated May 25, which was reviewed by Reuters.
The inspections revealed that Tata was discharging wastewater into a rainwater harvesting pond on its premises, which subsequently overflowed, contaminating “groundwater in the open wells located in the adjacent agricultural lands,” according to the pollution board’s notice to Tata.
Tata failed to implement corrective measures as instructed in a prior letter from the pollution board dated December 23, 2025, as stated in the three-page notice.
Tata Electronics informed Reuters that it had engaged an independent analysis by an accredited laboratory, which indicated that the company was “in full compliance with all regulatory norms.”
Tata asserted its commitment to responsible business practices and safeguarding the environment and local communities, stating it had communicated with pollution authorities but did not provide further specifics.
In its May notice, the pollution board requested that Tata clarify why power to the plant should not be terminated and the facility closed due to its alleged violations of regulations.
Apple, which enforces strict guidelines on wastewater management among its suppliers, and the Tamil Nadu government did not respond to requests for comments from Reuters.
APPLE’S CHALLENGES IN INDIA
Businesses frequently encounter disciplinary actions from pollution regulators in India. In 2024, Mercedes-Benz enhanced its wastewater and air pollution management at its sole car plant in India after officials identified compliance shortcomings with environmental laws.
India’s environment ministry reported to parliament in February that 4.4% of 544,364 industries were found to be non-compliant with environmental standards over the past five years, leading to the shutdown of 3,600 businesses by pollution control agencies.
The Tata notice contributes to a series of complications that have impacted Apple’s supply chain in India. A fire at Tata’s Hosur facility in September 2024 temporarily disrupted iPhone component production, while another fire at a previously contracted supplier Pegatron’s iPhone plant halted production for several days in September 2023.
In 2024, a Reuters investigation revealed that significant Apple supplier Foxconn systematically excluded married women from iPhone assembly positions at one of its Indian plants, even though the company maintained that it adhered to all legal requirements.
India is expected to produce 26% of all iPhones globally in 2026, a significant increase from just 6% four years earlier, according to research firm Counterpoint.
