Foxconn’s $1.5 Billion Investment in India

Investor: Foxconn’s Singapore-based subsidiary
Amount: 127.74 billion rupees ($1.5 billion)
Recipient: Yuzhan Technology India
Purpose: Expansion of manufacturing facilities and increased iPhone production capacity
Location: Tamil Nadu, Karnataka, and Telangana
Filing: Reported on the London Stock Exchange, May 19, 2025

Apple Supplier Foxconn to Invest $1.5 Billion in India

Foxconn, a major supplier for Apple, has announced a significant investment of $1.5 billion in its India unit, Yuzhan Technology India. This move comes as Apple intensifies efforts to shift iPhone production away from China, driven by global supply chain changes and geopolitical challenges. The investment underscores India’s growing role as a key manufacturing hub for Apple and highlights Foxconn’s commitment to expanding its operations in the country.

Foxconn’s Investment in India

Foxconn’s Singapore-based subsidiary will purchase 12.77 billion shares in Yuzhan Technology India, valued at 10 rupees per share, totaling 127.74 billion rupees ($1.5 billion), according to a filing with the London Stock Exchange. Yuzhan Technology India, located in Tamil Nadu, is a critical part of Foxconn’s operations, focusing on the production of electronic components and the assembly of Apple’s iPhones. This investment will support the expansion of Foxconn’s facilities in southern India, including new factories and increased production capacity in states like Tamil Nadu, Karnataka, and Telangana.

Apple’s Shift to India

Apple is actively working to reduce its reliance on China for iPhone manufacturing, with a goal to produce most iPhones sold in the United States from India by the end of next year. In the financial year ending March 2025, Apple produced approximately $22 billion worth of iPhones in India, marking a 60 percent increase from the previous year. Additionally, iPhone exports from India reached over ₹1.5 trillion ($17.4 billion), contributing to the country’s total smartphone exports of ₹2 trillion, a 54 percent rise year-over-year.

This shift has not been without controversy. U.S. President Donald Trump has publicly urged Apple CEO Tim Cook to prioritize manufacturing in the United States rather than building new factories in India. Despite this, Apple has no iPhone manufacturing facilities in the U.S. but has pledged to invest $500 billion domestically and increase hiring over the next four years.

India’s Growing Role in iPhone Production

India is becoming a cornerstone of Apple’s global supply chain. Foxconn’s facilities in southern India, alongside contributions from other suppliers like Tata Group, are driving this growth. Tata has strengthened its position by acquiring Wistron’s Indian operations and managing Pegatron’s local business, further supporting Apple’s manufacturing efforts.

India’s appeal as a manufacturing hub stems from its skilled workforce, improving infrastructure, and government incentives. The country’s Minister for Electronics and Information Technology, Ashwini Vaishnaw, highlighted the milestone of Apple’s export achievements, signaling India’s rising prominence in global electronics production.

Strategic Reasons for the Shift

Apple’s push to diversify its manufacturing base was accelerated by disruptions in China during the Covid-19 pandemic, which exposed the risks of relying heavily on a single region. Rising U.S.-China tensions and the potential for tariffs as high as 50 percent on Chinese-made goods have further prompted Apple and its suppliers to explore alternatives like India and Southeast Asia. While a complete exit from China is unlikely in the near term, India’s role in Apple’s supply chain is expected to grow significantly.

Broader Implications

Foxconn’s $1.5 billion investment is part of a broader strategy to mitigate geopolitical risks and adapt to changing global trade dynamics. In addition to its efforts in India, Foxconn is also expanding its presence in the United States, aligning with Apple’s commitments to invest domestically. This dual approach reflects a careful balancing act to maintain flexibility in an increasingly complex global market.

India’s emergence as a manufacturing hub not only benefits Apple and its suppliers but also strengthens the country’s position in the global electronics industry. With continued investments and partnerships, India is poised to play a pivotal role in shaping the future of smartphone production.

Foxconn’s $1.5 billion investment in its India unit marks a significant step in Apple’s strategy to diversify its manufacturing operations. As India’s role in iPhone production grows, supported by Foxconn and other key suppliers like Tata, the country is cementing its status as a vital part of Apple’s global supply chain. While challenges such as geopolitical tensions and tariff concerns persist, this investment highlights the strategic importance of India in the evolving landscape of global manufacturing.

Ansi

With over 15 years of experience in Digital Marketing, I’ve honed my skills in understanding what truly engages audiences. Although I’m not a full-time journalist, I’ve made it my mission to deliver news content that is not only rich in detail but also reliable and authentic. My approach is unique—combining my marketing expertise with a meticulous selection of sources, I craft content that stands out for its accuracy and depth. By curating information from the best available resources, I ensure that my readers receive well-rounded, trustworthy insights. My goal is to build a news portal that serves users with comprehensive and genuine content, designed to inform, educate, and inspire.