Apple’s strategic shift in iPhone manufacturing is gaining significant momentum. Foxconn, Apple’s primary iPhone assembler, is injecting an additional $1.5 billion into its Indian operations. This substantial investment, confirmed via an exchange filing, underscores a clear drive to diversify production away from China and ramp up manufacturing in India.
Foxconn has been aggressively expanding in southern India, constructing new facilities and augmenting existing capacities. This latest financial commitment directly supports Apple’s ambitious target: to source the majority of iPhones sold in the U.S. from India by late 2026.
This reorientation hasn’t gone unnoticed. U.S. President Donald Trump recently urged Apple CEO Tim Cook to halt further plant construction in India, prioritizing U.S. manufacturing instead. This stance introduces uncertainty into Apple’s carefully laid diversification plans, as the company navigates potential tariffs and broader geopolitical instabilities.
While China remains the cornerstone of Apple’s iPhone production, and the U.S. currently has no domestic smartphone manufacturing, Apple has previously committed to a $500 billion domestic spend over the next four years. Foxconn is also increasing investments in the U.S., a calculated move to mitigate potential geopolitical fallout.
Beyond Foxconn, the Tata Group’s electronics manufacturing arm has become a crucial player in India’s burgeoning iPhone ecosystem. A new Tata plant has already commenced iPhone production, with another major Foxconn facility in Bengaluru anticipated to begin shipments imminently.
This increased focus on India is demonstrably impacting export figures. Apple’s iPhone exports from the country reportedly surged by a remarkable 116% in April 2025 compared to the previous year.
In the 12 months leading up to March 2025, Apple assembled an impressive $22 billion worth of iPhones in India, a nearly 60% year-over-year increase. This solidifies India’s rapidly growing importance as a critical alternative manufacturing hub for the global tech giant. The $1.5 billion Foxconn investment will undoubtedly fuel this expansion, potentially even supporting a new semiconductor facility in India, signaling a deeper commitment to the nation’s burgeoning tech manufacturing landscape.
(via Bloomberg)
