Foxconn, Apple’s primary iPhone assembler, has pledged a substantial $1.5 billion investment to expand its operations in India. This move underlines a major shift in Apple’s global supply chain strategy, reducing its dependency on China and positioning India as a vital iPhone production hub.
Diversifying iPhone Production
The investment is part of Apple’s broader efforts to diversify its manufacturing operations outside China. Factors such as the U.S.-China trade war, Covid-19-induced supply chain disruptions, and rising geopolitical tensions have compelled Apple to mitigate risks by relocating a portion of its manufacturing to countries like India and Southeast Asia.
Foxconn’s Indian operations in Tamil Nadu, Karnataka, and Telangana have become pivotal in assembling iPhones for both domestic and export markets. In the 12 months leading up to March 2025, Apple’s iPhone production in India soared to $22 billion, marking a 60% increase year-over-year.
Tata Group’s Strategic Role
Joining the push, Tata Group has significantly bolstered Apple’s India presence by acquiring Wistron’s Indian operations and taking over Pegatron’s local business. This has helped strengthen the ecosystem needed to support Apple’s aim of producing a substantial share of iPhones sold in the U.S. from India by the end of 2025.
India's Export Milestone
Union Minister for Electronics and IT, Ashwini Vaishnaw, announced that Apple exported $17.4 billion worth of iPhones from India in FY25. Total smartphone exports from India reached $23.4 billion, a 54% growth compared to the previous year, reinforcing India’s emergence as a global electronics manufacturing powerhouse.
Strategic Shift from China
The push to relocate production from China was accelerated by:
- Pandemic-induced delays in Chinese factories
- Geopolitical instability
- U.S.-China trade tensions and tariffs
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Local Economic Impact in Karnataka
Foxconn’s expansion includes the Devanahalli ITIR (Information Technology Investment Region) near Bengaluru. Karnataka’s Minister M.B. Patil announced that iPhone exports to the U.S. from this facility are expected to begin by June 2025. The move is projected to:
- Attract foreign direct investment
- Generate local employment
- Boost Karnataka’s prominence in global electronics manufacturing
Conclusion
Foxconn’s $1.5 billion investment is a strong endorsement of India’s rising importance in the global electronics value chain. As Apple and its partners scale operations, India is poised to become a central manufacturing hub — not just for smartphones, but for global tech innovation at large.
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