Apple is preparing to make a landmark shift in its global supply chain by relocating the manufacturing of all iPhones for the US market to India by 2026, sources familiar with the company’s plans revealed. The decision is still contingent on India’s ability to scale up its production capabilities rapidly and will also depend on future developments in US-China trade relations. Nevertheless, Apple has already drawn up an aggressive roadmap that includes the production of up to 40 million iPhones in India next year alone.
Foxconn’s new mega-facility in Bengaluru, expected to commence operations by the end of this month, will be instrumental in Apple’s strategy. Once it reaches full capacity, this plant could roll out up to 20 million units annually. Meanwhile, other Apple suppliers such as Tata Electronics are scaling up their manufacturing footprints, taking control of former Wistron and Pegatron operations to meet the surging demand. The move comes amid Apple’s larger effort to build a more resilient and diversified supply chain following the pandemic disruptions that highlighted the risks of overreliance on Chinese manufacturing.
While Apple has yet to make an official announcement regarding the shift, it is noteworthy that the tech giant has steadily increased its manufacturing presence in India. In the fiscal year ending March 2025, Apple assembled $22 billion worth of iPhones in India, marking a staggering 60% increase from the previous year. Exports from India have also seen a sharp rise, with iPhones worth ₹1.5 trillion ($17.4 billion) shipped overseas, according to India’s IT minister. Apple now manufactures its entire iPhone range domestically in India, including the latest premium titanium-bodied Pro models.
Shifting Away from China: A New Era for Apple’s Global Strategy
Apple’s move to diversify beyond China is not sudden but has intensified in recent years due to a combination of operational, political, and economic pressures. Extended lockdowns at critical Chinese manufacturing sites during the pandemic exposed vulnerabilities that even a company of Apple’s scale could not ignore. Furthermore, escalating tensions between the US and China and the imposition of steep tariffs — reaching as high as 145% on Chinese goods — have added new urgency to Apple’s diversification efforts.
According to Bloomberg Intelligence, despite Apple’s swift moves, it could still take up to eight years to shift even 10% of its overall production capacity out of China, underscoring the complexity of global supply chains. Nearly 200 of Apple’s suppliers remain China-based, making complete decoupling a long-term challenge. Nevertheless, India’s role continues to grow stronger, backed by substantial government incentives such as the $2.7 billion financial package aimed at boosting electronics and semiconductor manufacturing.
The Indian government’s ‘Make in India’ initiative, championed by Prime Minister Narendra Modi, has created a supportive environment for Apple’s ambitions. In addition to Foxconn, the Tata Group is emerging as a vital player in this new ecosystem, positioning itself as a major contract manufacturer for iPhones.
Samsung Strengthens Commitment to Tamil Nadu Amid Labour Turmoil
In another major development for India’s electronics sector, South Korean tech giant Samsung Electronics has announced an additional investment of ₹1,000 crore into its Sriperumbudur plant in Tamil Nadu. The announcement was made by Tamil Nadu’s Industries Minister TRB Rajaa, who emphasized that Samsung’s continued commitment demonstrates strong confidence in the region’s skilled workforce and stable manufacturing environment.
Samsung’s Sriperumbudur facility primarily produces appliances such as refrigerators, washing machines, and televisions and contributed significantly to Samsung India’s $12 billion revenue in 2022–2023. The facility currently employs more than 2,000 workers, and the new investment is expected to create at least 100 new jobs.
However, the expansion comes against the backdrop of significant labour unrest. In September 2024, hundreds of employees launched a five-week-long protest demanding better wages and formal union recognition. A second wave of unrest followed in February 2025 after the suspension of several workers, prompting further sit-ins and even the threat of a hunger strike. Samsung denied allegations of union-busting, insisting compliance with all local laws, but the tensions have underlined the challenges companies face even as they expand their footprint in India.
Despite these challenges, Samsung is moving forward with its investment plans, signaling a commitment to Tamil Nadu’s long-term industrial growth. The company’s decision aligns with the state’s broader ambition to position itself as a major manufacturing hub for both domestic and international brands.
India’s Emerging Role as a Global Tech Manufacturing Giant
The parallel expansion strategies of Apple and Samsung highlight a broader tectonic shift in global manufacturing trends. India, once seen primarily as a market for technology products, is rapidly evolving into a critical production base for some of the world’s biggest electronics brands. As companies diversify away from China, India offers a combination of skilled labour, strong government incentives, and a massive internal market.
If Apple successfully transitions full iPhone production for the US market to India within the next two years, it would mark one of the most significant supply chain overhauls in the history of the tech industry. Meanwhile, Samsung’s continued investment, despite recent labour issues, reinforces India’s growing attractiveness as a manufacturing destination.
The next few years will be pivotal. If India can scale up infrastructure, streamline regulations, and address labour challenges effectively, it could well become the world’s next big electronics manufacturing powerhouse, reshaping the global tech supply chain for decades to come.
