In a significant move to diversify its manufacturing footprint, Foxconn, the primary assembler of Apple’s iPhones, has announced a $1.5 billion investment in its Indian subsidiary, Yuzhan Technology India. This investment aims to bolster iPhone production in India, aligning with Apple’s strategy to reduce dependence on Chinese manufacturing amid escalating geopolitical tensions and trade uncertainties.
The investment, executed through Foxconn’s Singapore-based entity, involves acquiring 12.77 billion shares at 10 rupees each, totalling approximately 127.74 billion rupees ($1.5 billion). Yuzhan Technology India, located in Tamil Nadu, is instrumental in assembling iPhones and producing electronic components for Apple.
Apple’s shift towards Indian manufacturing has been gaining momentum. In March 2025, the company exported around 600 tons of iPhones, valued at $2 billion, from India to the United States. This move is part of Apple’s broader plan to have the majority of iPhones sold in the U.S. manufactured in India by the end of 2026.
However, this strategic pivot has faced criticism from former U.S. President Donald Trump, who has urged Apple CEO Tim Cook to relocate production back to the United States. Trump expressed concerns over Apple’s increasing reliance on Indian manufacturing, emphasizing the need for domestic production.
Despite political pressures, Apple continues to expand its operations in India. Foxconn’s new facility in Karnataka is set to commence iPhone shipments in June 2025, marking it as the company’s second-largest iPhone production centre globally.
This substantial investment underscores India’s growing significance in the global electronics manufacturing landscape and highlights Apple’s commitment to diversifying its supply chain to mitigate risks associated with over-reliance on a single country.
