Apple's Main Manufacturing Partner Foxconn Allocates USD 1.5 Billion to Expand Operations in India. This investment is part of a broader push to scale up iPhone production outside China. The capital was routed through Foxconn's Singapore-based arm, as revealed in a stock exchange filing. While the precise use of the funds has not been disclosed, industry observers suggest the investment will back Foxconn's aggressive expansion in southern India.

Expansion Plans

Foxconn is already developing new manufacturing facilities and boosting capacity across states like Tamil Nadu, Karnataka, and Telangana. The company has invested $1.48 billion in its India operations, specifically in its Tamil Nadu-based unit, operated by Yuzhan Technology. This investment supports Apple's strategy to diversify iPhone production beyond China, with a significant portion of iPhones sold in the US now sourced from India.

Financial Impact

Apple's manufacturing output in India reached approximately USD 22 billion in the 12 months leading up to March, representing a 60 per cent year-on-year surge. On the export front, iPhones worth more than USD 17.4 billion were shipped overseas during the financial year ending March 2025. Total smartphone exports from India also climbed to over Rs 2 trillion in the same period, reflecting a 54 per cent rise from the previous year.

Geopolitical Considerations

Apple's shift toward India is also influenced by geopolitical considerations. The company aims to manufacture the bulk of iPhones sold in the United States from Indian factories by the end of next year. This transition has drawn criticism from political quarters in the US, with President Donald Trump calling on Apple CEO Tim Cook to halt expansion in India and instead prioritize setting up production facilities in the United States. The investment by Foxconn in India marks a significant development in Apple's plans to diversify its manufacturing operations, and it will be interesting to see how this expansion unfolds in the coming years.