New Delhi: 

This action is part of Apple’s plan to use a wider range of suppliers. The investment by Foxconn is expected to help assemble iPhones in India and could lead to more tech production, with the support of a semiconductor project backed by the government. This move is occurring despite global disruptions and increasing risks between countries.

The largest iPhone assembler for Apple, Foxconn, is investing $1.5 billion in its India operations to move some production out of China, reported by Bloomberg. The investment is coming from Foxconn’s Singapore arm to help Apple increase its production capacity in southern India.

India’s role in Apple’s supply chain grows

The main push is coming from Foxconn’s factories in Tamil Nadu, Karnataka and Telangana. Tata Group is another important Apple supplier that is increasing its activities. Tata now operates Wistron’s local business and is running Pegatron’s business in India.

Apple is working at a faster pace to produce more iPhones in India than in China. The business is planning to make most of its iPhone 18 models for the U.S. in India by the year 2026. About 50 percent of iPhones sold in the United States during the previous quarter were manufactured in India.

Semiconductor ambitions

The Indian government approved a project for a new semiconductor plant with Foxconn and HCL Group. The factory is capable of producing up to 20,000 wafers in a month and 36 million display driver chips every year. Although it doesn’t help Apple now, officials are hoping it will in the future.

By investing $433 million, the Indian government has shown its seriousness about getting involved in chip production. The facility will boost India’s position in the global electronics industry.

A strategic shift post-COVID

Apple sold $22 billion worth of iPhones in India during the year ending March 2025 which was 60 percent more than the previous year. India sent out over Rs 1.5 trillion ($17.4 billion) worth of iPhones during that period.

Smartphone exports from India increased by 54 percent to Rs 2 trillion last year. It is clear from these numbers that Apple now relies on India for its long-term production and export strategy.

Apple made the move to India more urgent due to disruptions caused by COVID-19 closures in Chinese factories. It became clear during the pandemic that relying too much on one area for manufacturing could be risky. Apple has started to consider other countries due to the political disputes between the U.S. and China. Since the tariffs on Chinese goods could go as high as 50 percent, India is a better and more flexible alternative.

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