Apple’s primary iPhone assembler, Hon Hai Precision Industry Co. (Foxconn), has committed a $1.5 billion investment into its Indian operations, reinforcing the tech giant’s strategic move to shift a significant portion of its manufacturing base outside China. The investment, disclosed through Foxconn’s Singapore-based subsidiary in a stock exchange filing on May 19, is expected to fund large-scale expansion efforts across southern India, including the construction of new production facilities and the ramp-up of existing operations.
The decision comes as Apple intensifies efforts to de-risk its global supply chain from the geopolitical volatility and logistical vulnerabilities that became evident during the COVID-19 pandemic. With growing US-China tensions and the looming possibility of steep tariffs on Chinese-made goods, India is rapidly emerging as a vital hub in Apple’s diversified manufacturing strategy.
India Emerges as a Global iPhone Manufacturing Hub
India’s growing role in Apple’s global manufacturing blueprint is underscored by a remarkable surge in iPhone production. In the 12 months ending March 2025, Apple assembled approximately $22 billion worth of iPhones in India, representing a 60% increase in output year-over-year. Exports alone accounted for over ₹1.5 trillion ($17.4 billion), according to India’s Electronics and IT Minister Ashwini Vaishnaw.
Foxconn’s facilities across Tamil Nadu, Karnataka, and Telangana are at the heart of this boom. Complementing Foxconn’s operations, India’s Tata Group has expanded its presence by acquiring Wistron’s Indian business and overseeing Pegatron’s local facilities. Together, these firms are enabling Apple to meet growing global demand while also navigating supply chain complexities.
Political Pressures and Strategic Balancing
Apple’s transition has not gone unnoticed in the political arena. Former U.S. President Donald Trump has criticized Apple’s overseas expansion, publicly urging CEO Tim Cook to halt factory developments in India and shift focus to American manufacturing. Despite Apple’s previous pledge to invest $500 billion and boost domestic hiring in the U.S., the company still produces no iPhones within American borders.
Nonetheless, Apple and Foxconn continue to pursue a dual-track strategy. While investment in India is rapidly growing, both companies are also expanding their footprints in the U.S., aiming to strike a balance between geopolitical risk management and global supply chain efficiency.
Diversification, Not Departure
Despite the momentum in India, a full-scale exit from China remains unlikely. China still offers unparalleled infrastructure, logistics, and workforce readiness, which are difficult to replicate entirely. However, the growing investments in India signify a clear shift in the center of gravity for Apple’s manufacturing operations.
The India expansion not only reflects Apple’s long-term vision for a more resilient supply chain but also positions the country as a central pillar of its global strategy. With Foxconn’s latest $1.5 billion commitment, India is steadily becoming Apple’s second manufacturing engine—one capable of sustaining high output and export performance in a volatile global environment.
