Foxconn commits $1.5 billion to India as Apple ramps up iPhone production shift from China
Bengaluru: Foxconn, the primary assembler of Apple iPhones globally, has injected $1.5 billion into its Indian subsidiary, according to The Economic Times.
The funding, routed through its Singapore-based entity, was disclosed in a stock exchange filing on Monday, May 19.
The capital infusion is expected to fuel Foxconn’s ongoing expansion in southern India, where it is building new facilities and boosting manufacturing capabilities.
The company has not yet released further specifics.
The move comes as Apple accelerates its strategy to shift a significant share of iPhone production away from China.
The tech giant aims to manufacture most of the iPhones sold in the US from India by the end of next year.
The transition hasn’t gone unnoticed in Washington. US President Donald Trump recently criticised Apple CEO Tim Cook, urging him to halt new factory investments in India and focus instead on manufacturing in the United States.
Trump’s remarks are in line with growing political concerns over tariffs and global supply chain vulnerabilities.
Despite its longstanding dependence on Chinese factories, Apple currently does not produce iPhones in the US.
However, the company has pledged to invest $500 billion in the American economy and expand domestic hiring over the next four years.
While expanding its footprint in India, Foxconn — also known as Hon Hai — is concurrently investing in US operations, reflecting a broader attempt to reduce exposure to geopolitical risks, particularly those stemming from rising tariffs on Chinese exports.
Foxconn’s facilities in Tamil Nadu, Karnataka, and Telangana are now central to Apple’s India manufacturing efforts.
Other suppliers are also playing a bigger role.
The Tata Group has taken over Wistron’s Indian operations and is managing Pegatron’s local business, consolidating its position as a key Apple partner.
In the 12 months ending March, Apple manufactured approximately $22 billion worth of iPhones in India, marking a nearly 60 percent rise in production year-on-year.
Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, recently announced that Apple exported iPhones worth over ₹1.5 trillion ($17.4 billion) during the 2024–25 financial year — a milestone in Apple’s campaign to reduce its reliance on Chinese factories.
India’s total smartphone exports crossed ₹2 trillion in the same period, reflecting a 54 percent jump from the previous year.
The strategic shift is rooted in the disruption Apple faced during the Covid-19 pandemic, which underscored the risks of overconcentration in China.
Since then, Apple has been working closely with suppliers such as Foxconn and Tata to scale up its Indian manufacturing base.
Tata’s acquisitions of Wistron and Pegatron’s local operations have solidified its role in Apple’s long-term plans.
Nonetheless, experts believe Apple is unlikely to completely sever its manufacturing ties with China anytime soon.
While India and Southeast Asia have become increasingly important, a full decoupling from China remains improbable in the near term, particularly given the country’s established infrastructure and scale.
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