iPhone Maker Foxconn to Invest $1.5 Billion in India
Foxconn will boost phone production in the South Asian nation to mitigate tariff risks.
prativad 
Foxconn will boost phone production in the South Asian nation to mitigate tariff risks.
iPhone manufacturer Foxconn is set to invest $1.5 billion in India in an effort to reduce tariff risks, the Taiwanese electronics maker disclosed in a London Stock Exchange filing.
According to the filing, Foxconn's Singapore subsidiary will make this investment in its Indian counterpart, Yuzhan Technology India. Foxconn's unit in the southern state of Tamil Nadu, Yuzhan Technology India, currently manufactures electronic components and assembles Apple iPhones.
Apple is expanding its presence in India by increasing domestic manufacturing and extending its local operations. Earlier this month, local media reported that Apple informed India's Ministry of Communications of its plans to relocate the assembly of all iPhones from China to India. This shift comes amid escalating trade tensions between Washington and Beijing.
Apple CEO Tim Cook reportedly confirmed the production shift during the company's quarterly earnings call, stating that "the country of origin for most iPhones sold in America will be India." According to media reports, over 60 million iPhones are expected to be sold annually in the US by the end of 2026, necessitating that Apple double its production in India. The company currently assembles about 20% of its phones there; in the 12 months ending March, these were valued at $22 billion, a 60% increase. However, China still accounts for approximately 80% of Apple's production capacity.
Apple is considering India as a potential alternative manufacturing hub due to tariffs imposed on China by President Donald Trump, raising concerns about potential supply chain disruptions and increased iPhone prices. The California-headquartered company's alleged plan to produce more iPhones in India recently led President Donald Trump to advise Cook against expanding the company's manufacturing operations in the South Asian country. However, analysts believe that starting iPhone manufacturing in the US, where Apple lacks existing facilities, would require significant time and investment. Sonam Chandwani, Managing Partner at KS Legal & Associates, noted, "This would potentially double prices, taking a $1,599 iPhone to up to $3,500, impacting consumer demand and Apple's market position."
