Apple's Main Manufacturing Partner, Foxconn, Allocates $1.5 Billion To Expand Operations In India

Foxconn’s Indian plants have taken centre stage in assembling iPhones, and the ecosystem is expanding rapidly with contributions from other major players.

Apple’s manufacturing output in India reached approximately $22 billion in the 12 months leading up to March, representing a 60 per cent year-on-year surge.

Source : Apple

Apple’s primary manufacturing partner, Hon Hai Precision Industry Co., commonly known as Foxconn, has allocated $1.5 billion to its Indian operations as part of a broader push to scale up iPhone production outside China. The capital was routed through the company’s Singapore-based arm, as revealed in a stock exchange filing dated May 19, according to The Economic Times.

While the Taiwanese electronics giant has not disclosed the precise use of the funds, industry observers suggest the investment will back its aggressive expansion in southern India. Foxconn is already developing new manufacturing facilities and boosting capacity across states like Tamil Nadu, Karnataka, and Telangana.

India Emerges as a Key iPhone Assembly Hub

India is fast becoming a critical pillar in Apple’s global manufacturing network. Foxconn’s Indian plants have taken centre stage in assembling iPhones, and the ecosystem is expanding rapidly with contributions from other major players. Tata Group, in particular, has assumed a larger role after acquiring Wistron’s local business and managing operations previously overseen by Pegatron.

Apple’s manufacturing output in India reached approximately $22 billion in the 12 months leading up to March, representing a 60 per cent year-on-year surge. On the export front, Minister for Electronics and Information Technology Ashwini Vaishnaw confirmed that iPhones worth more than Rs 1.5 trillion ($17.4 billion) were shipped overseas during the financial year ending March 2025. Total smartphone exports from India also climbed to over Rs 2 trillion in the same period, reflecting a 54 per cent rise from the previous year.

This rapid scale-up highlights Apple’s commitment to diversifying its supply chain and reducing reliance on China, where production disruptions during the COVID-19 pandemic exposed vulnerabilities in its operations.

Geopolitical Pressures and Strategic Realignment

Apple’s shift toward India is also influenced by geopolitical considerations. The company aims to manufacture the bulk of iPhones sold in the United States from Indian factories by the end of next year. This transition, however, has drawn criticism from political quarters in the US. Recently,  President Donald Trump called on Apple CEO Tim Cook to halt expansion in India and instead prioritise setting up production facilities in the United States.

Despite the pushback, there is currently no iPhone manufacturing in the US, although Apple has committed to investing $500 billion domestically and plans to ramp up hiring over the next four years.

Foxconn’s parallel investments in the US demonstrate its intent to spread risk and navigate the uncertain trade environment. The potential imposition of steep tariffs—possibly as high as 50 per cent—on Chinese-made products is further pushing global tech firms to rethink their sourcing and manufacturing strategies.

Although India and Southeast Asia are playing an increasingly vital role in Apple’s production plans, analysts caution that a complete withdrawal from China is unlikely in the foreseeable future. Instead, Apple appears to be hedging its bets by strengthening alternative hubs without dismantling its existing infrastructure in China.