Apple and Foxconn Deepen Investments in India Amid Shifting Manufacturing Strategies

Apple and Foxconn are strengthening their presence in India, with Foxconn investing $1.5 billion to expand its production facilities. This aligns with Apple’s strategy to reduce reliance on China by shifting iPhone manufacturing to India, targeting U.S. demand by next year. Despite criticism from U.S. President Trump, Apple remains focused on diversifying its supply chain amid geopolitical tensions. India’s role has grown, contributing $22 billion in iPhone production last year, signaling its emergence as a key global manufacturing hub.

Hon Hai Precision Industry Co., widely recognized as Foxconn and the primary assembler of Apple’s iPhones, has announced a significant financial commitment to its operations in India, signaling a broader strategic pivot for both companies.

According to reports, Foxconn has allocated $1.5 billion to its Indian subsidiary through its Singapore-based unit, as disclosed in a stock exchange filing on May 19. The funds are expected to bolster the company’s ongoing expansion in southern India, where it is scaling up its production capabilities and constructing new facilities. While details about the specific projects remain scarce, the move underscores India’s growing importance in Apple’s global manufacturing strategy.

Apple’s Shift Away from China

Apple has been steadily accelerating its efforts to reduce dependency on China for iPhone production. By the end of next year, the company aims to manufacture most of the iPhones sold in the United States from India. This strategic shift comes in response to geopolitical tensions, economic uncertainties, and disruptions such as those caused by the Covid-19 pandemic, which highlighted the vulnerabilities of concentrating production in a single region.

However, this transition has not been without controversy. US President Donald Trump recently criticized Apple CEO Tim Cook, urging the company to prioritize manufacturing within the United States instead of expanding in India. Despite these remarks, Apple continues to move forward with its plans, which include a $500 billion domestic investment and increased hiring in the US over the next four years.

In parallel, Foxconn has also been diversifying its operations outside of China, investing in both India and the United States to reduce exposure to potential geopolitical risks, including tariffs on Chinese goods.

India’s Expanding Role in iPhone Assembly

India has rapidly emerged as a key player in Apple’s supply chain. Foxconn’s factories in Tamil Nadu, Karnataka, and Telangana are now at the forefront of iPhone assembly within the country. Other prominent suppliers, such as Tata Group, are also contributing to this growth. Tata recently acquired Wistron’s Indian operations and has taken over the management of Pegatron’s local business, further integrating itself into Apple’s supply chain.

The financial impact of this shift is evident. Apple produced iPhones worth $22 billion in India during the 12 months ending in March 2025, marking an almost 60% increase in production from the previous year. Additionally, India’s Minister for Electronics and Information Technology, Ashwini Vaishnaw, revealed that iPhone exports exceeded ₹1.5 trillion ($17.4 billion) during the same period. This milestone aligns with a broader trend, as India’s overall smartphone exports surged by 54%, crossing ₹2 trillion.

Strategic Drivers Behind the Transition

Apple’s increased focus on India stems from both practical and strategic considerations. The disruptions caused by the Covid-19 pandemic in China exposed the risks of over-reliance on a single manufacturing hub. In response, Apple has worked closely with partners like Foxconn and Tata to ramp up production in India. Tata’s acquisitions of Wistron and Pegatron facilities have positioned it as a critical player in Apple’s India plans.

Simultaneously, escalating US-China tensions and the looming threat of higher tariffs—potentially as high as 50%—are pushing Apple and other global firms to diversify their supply chains. While India and Southeast Asia are becoming central to Apple’s production strategy, experts believe a complete withdrawal from China remains unlikely in the foreseeable future.

A New Era of Global Manufacturing

As Apple and Foxconn deepen their investments in India, the country’s role as a manufacturing hub is set to expand further. This strategic realignment reflects not only the shifting realities of global trade but also the growing recognition of India as a viable alternative to China for high-tech production.

By diversifying their operations, Apple and Foxconn are not only mitigating risks but also laying the groundwork for a more balanced and resilient supply chain. While challenges remain, the moves signal the dawn of a new era in global manufacturing, one where India’s prominence is poised to grow substantially.