iPhone manufacturing in India received a major boost as The Economic Times reported that Hon Hai Precision Industry Co., the primary manufacturer of Apple’s iPhones, had pledged $1.5 billion to its Indian affiliate. Its Singapore-based company made the investment, a stock market filing on Monday (May 19) stated.
It is anticipated that the money would help Hon Hai continue to grow in southern India, where it is constructing new facilities and boosting its output. Additional information has not yet been released by the firm.
Apple is moving its iPhone manufacturing to India.
Apple is working faster to shift a large percentage of iPhone production from China. By the end of next year, the majority of iPhones sold in the US are expected to be made in India.
US President Donald Trump has criticized this change, lately calling on Apple CEO Tim Cook to cease constructing new plants in India and instead produce in the United States. Trump’s comments coincide with wider worries about tariffs and political unrest throughout the world.
There is presently no iPhone manufacture in the United States, despite Apple’s long-standing reliance on Chinese companies for iPhone production. However, over the next four years, the corporation has committed to hiring more people domestically and investing $500 billion in the US.
Hon Hai (commonly known as Foxconn) is increasing its investments in the US in addition to growing in India. These actions are a component of a larger plan to lessen exposure to geopolitical risks, such as the effect of tariffs on commodities produced in China.
India’s contribution to iPhone manufacturing increases
The main location for iPhone assembly in India is now Foxconn’s facilities in Telangana, Karnataka, and Tamil Nadu in the south of the nation. This endeavor is also being supported by other significant vendors. For instance, the Tata Group has increased its involvement by taking over Pegatron’s local company and purchasing Wistron’s Indian operations.
In the 12 months ended in March, Apple manufactured over $22 billion worth of iPhones in India, which represents a roughly 60% increase in output over the previous year.
In the fiscal year that concluded in March 2025, Apple shipped iPhones valued at over ₹1.5 trillion ($17.4 billion), according to a recent announcement by Ashwini Vaishnaw, Minister of Electronics and Information Technology. This is a major turning point in Apple’s plan to shift production from China.
Why iPhone Manufacturing in India Is Apple’s Boldest Bet Yet
Over the same time period, India’s total smartphone exports surpassed ₹2 trillion, a 54% rise over the previous year.
Disruption-driven strategic change
Following manufacturing problems in China during the Covid-19 outbreak, which highlighted the dangers of relying too much on one site, Apple is expanding its presence in India.
In order to expand production in India, the business has been collaborating with vendors like as Foxconn and Tata ever since. Tata is now a major partner in Apple’s India strategy thanks to its recent purchases of Wistron and Pegatron plants.
At the same time, Apple and other multinational corporations are diversifying their supply chains in response to growing US-China tensions and the prospect of greater tariffs, which might reach 50%. Even while India and Southeast Asia are playing a bigger role in Apple’s production plan, analysts don’t think the company will soon completely leave China.
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