Tata's iPhone manufacturing facility in Hosur, Tamil Nadu faces potential shutdown after regulators accused the plant of contaminating farmland water. The Tamil Nadu Pollution Control Board (TNPCB) found that wastewater discharge caused a rainwater harvesting pond to overflow, polluting groundwater in adjacent agricultural wells. Farmers had complained repeatedly about the contamination before the board intervened.

TNPCB conducted five inspections between December 2025 and May 2026, concluding that groundwater contamination affected local farmland. Despite warnings dating back to December 23, 2025, regulators claim Tata failed to implement corrective measures. The board has now formally asked why the factory should not close and ordered power supply cuts to the facility. Tata disputes these findings, stating an independent analysis confirmed regulatory compliance and that they responded to TNPCB concerns.

This facility became operational after Tata acquired Pegatron's iPhone plant in 2024, part of over $1 billion invested to expand production in the region. The plant previously shut down temporarily following a fire in late 2024. Apple has not publicly addressed the regulator's findings, leaving the future of iPhone component manufacturing at this location uncertain as environmental and corporate interests collide.

The dispute highlights growing environmental scrutiny of major manufacturing operations in India, where Tata has expanded iPhone production significantly since acquiring Wistron's Karnataka plant in 2023. Regulatory action could disrupt supply chains if the shutdown proceeds.