Hon Hai Precision Industry (Foxconn), a key supplier for Apple, plans to inject $1.5bn into its Indian operations, as per a company filing with the London Stock Exchange. This move aligns with Apple’s broader initiative to diversify its iPhone manufacturing footprint beyond China, which has been heavily impacted by tariffs, according to reporting by Reuters. The investment will see Foxconn’s Singapore-based subsidiary acquire 12.77 billion shares in Yuzhan Technology India at INR 10 per share, amounting to a total of INR 127.74bn ($1.5bn). Situated in Tamil Nadu, Yuzhan Technology India is responsible for producing electronic components and assembling iPhones.
Apple has been increasingly bolstering its production capabilities in India, with substantial exports of around 600 tons of iPhones valued at $2bn to the US in March. This production surge aligns with India’s Atmanirbhar and Make in India initiatives, designed to enhance local manufacturing competitiveness and attract foreign investments. The Indian government has implemented Production Linked Incentive (PLI) schemes across various sectors, including electronics, to bolster exports and integrate Indian manufacturers into the global supply chain while reducing reliance on imports.
Global manufacturers rethink supply chains
Since the COVID-19 pandemic and persistent geopolitical tensions, many global manufacturers have been compelled to reevaluate their supply chains and expand operations across different regions as a risk mitigation strategy. India is believed to have emerged as a key destination for manufacturing due to its stable political environment, vast market potential, flexible workforce, and increasing income levels. Apple initiated iPhone production in India back in 2017, driven by government incentives such as the PLI scheme, which has attracted several electronics manufacturers to establish operations in the country.
Recently, Foxconn received approval from the Indian government to establish a semiconductor plant in collaboration with HCL Group. This venture involves an investment of INR 37.06bn ($433m) with an aim to commence operations by 2027 in Uttar Pradesh state. The facility is expected to produce up to 20,000 wafers and 36 million display driver chips each month. This development highlights the ongoing shift by Apple suppliers, including Foxconn, towards India amid continuous trade tensions between China and the US.
Last month, a report from the Financial Times revealed that Apple plans to relocate all assembly of iPhones destined for the US market from China to India by the end of 2026. This strategic move is part of Apple’s response to escalating trade tensions and tariff pressures under US President Donald Trump’s administration. The tariffs on Chinese imports had significant financial repercussions for Apple, contributing to a market value decline of approximately $700bn. Consequently, Apple expedited the export of Indian-manufactured iPhones to the US to alleviate these financial impacts.
Apple currently produces most of its iPhones in China through third-party assemblers like Foxconn, but has expanded operations in India as part of a broader diversification strategy. Collaborations with partners, including Tata Electronics and Foxconn, are vital to this expansion. To meet its target for 2026, Apple plans to double its Indian iPhone production capacity to supply over 60 million devices annually to the US market.
Read more: Apple to move iPhone production from China to India amid Trump tariffs
