Regulator Alleges Groundwater Contamination
An Indian pollution regulator has alleged that wastewater discharged from a Tata Electronics factory, which produces components for Apple's iPhone, has contaminated groundwater in nearby farmlands. The regulator has warned of a forced shutdown unless Tata provides a satisfactory explanation.
Tata's Role in Apple's Supply Chain
Tata Electronics is central to Apple's strategy to diversify iPhone production beyond China. It is the second-largest iPhone supplier in South Asia, after Taiwan's Foxconn. The plant under scrutiny is located in Hosur, Tamil Nadu, and manufactures back panels and other iPhone components.
Complaints and Inspections
Farmland owners near the plant had complained for months to the Tamil Nadu Pollution Control Board that wastewater from the factory was contaminating their land and open wells. These complaints prompted five state inspections between December 2025 and May 2026, as detailed in a regulatory notice dated May 25 and reviewed by Reuters.
The inspections revealed that Tata discharged wastewater into a rainwater harvesting pond within its facility, and that the pond overflowed, contaminating groundwater in open wells on adjacent agricultural lands, according to the pollution board's warning notice.
Tata's Response
Tata Electronics responded that it had commissioned an independent analysis through an accredited laboratory, which determined the company was in full compliance with all regulatory norms. Tata stated it is committed to responsible business practices and environmental protection, and that it had responded to pollution authorities, though no further details were provided.
Potential Consequences
The pollution board's May notice asked Tata to explain why power to the unit should not be cut and the unit closed for the alleged breach. Apple, which has strict wastewater handling rules for its suppliers, and the Tamil Nadu government did not respond to requests for comment.
Broader Context
Companies in India frequently face disciplinary action from pollution authorities. In 2024, Mercedes-Benz improved wastewater and air pollution management at its sole Indian car factory after officials found compliance lapses. India's environment ministry reported in February that 4.4% of 544,364 industries were non-compliant with environmental standards over the past five years, and 3,600 were shut down.
The Tata notice adds to a series of challenges for Apple's India supply chain. A fire at Tata's Hosur plant in September 2024 briefly halted iPhone component production, while a fire at former supplier Pegatron's iPhone plant in September 2023 halted production for days. In 2024, a Reuters investigation revealed that Foxconn systematically excluded married women from iPhone assembly jobs at one of its Indian plants, though Foxconn denied any wrongdoing.
India is projected to manufacture 26% of all iPhones globally in 2026, up from just 6% four years ago, according to research firm Counterpoint.
