Foxconn, formally known as Hon Hai Precision Industry Co., is investing $1.5 billion into its India operations through its Singapore subsidiary. The move marks a significant step in Apple’s broader strategy to diversify its supply chain away from China. The funds will support ongoing expansion in southern India, where Foxconn is building new plants and increasing production capacity.
This investment aligns with Apple’s push to shift a substantial portion of iPhone production to India. The company aims to export most US-bound iPhones from India by the end of next year. Apple has assembled $22 billion worth of iPhones in India over the past year, a 60% increase from the previous year.
Geopolitical Pressures and Local Expansion
The strategic shift comes amid rising geopolitical tensions and tariff concerns. While Apple has pledged to expand its domestic workforce and spend $500 billion in the US over four years, it still manufactures most iPhones in China. There is no smartphone production in the US.
Foxconn is not the only Apple supplier expanding in India. Tata Group’s electronics division, which acquired Wistron’s local unit and operates Pegatron’s India business, also plays a growing role in Apple’s supply chain.
As reported by Bloomberg and regulatory filings, Foxconn’s increased presence in India highlights a clear pivot in Apple’s global production strategy.