Why Foxconn is investing $1.5B in its Indian subsidiary
What's the story
Foxconn, the main manufacturer of Apple's iPhones, is investing $1.5 billion into its Indian subsidiary. The move is part of a larger strategy to shift production facilities from China to India. The Taiwan-based firm announced the investment via its Singaporean subsidiary in a recent exchange filing. The money will be utilized for building new manufacturing plants and increasing production capacity here.
Shift in production
Strategy to import iPhones from India
Apple plans to move most of its iPhone imports for the US market from China to India by the end of 2025. The strategic move has drawn criticism from US President Donald Trump, who recently urged Apple CEO Tim Cook, to stop building new plants in India. This underscores a growing trend among tech companies to diversify manufacturing locations beyond China amid tariff risks and geopolitical tensions.
Plans
Apple's current production and future commitments
Currently, Apple makes most of its iPhones in China and doesn't manufacture smartphones in the US. However, the tech giant has promised to hire more employees at home. It has also pledged a mammoth $500 billion investment over the next four years in America.
Scenario
A look at Apple's scene in India
Most India-made iPhones are assembled at Foxconn's facility near Bengaluru. Tata Electronics Private Limited (TEPL), which purchased Wistron's local business and operates Pegatron's operations here, is another important supplier. To note, Apple assembled iPhones worth $22 billion in India in the 12 months through March, increasing production by almost 60% over the previous year.