iPhone manufacturer wants to invest USD1.5 billion in India
(MENAFN) Foxconn, the Taiwanese electronics giant and primary iPhone manufacturer, has announced a $1.5 billion investment in India, aiming to reduce tariff-related risks. The investment will be made through Foxconn’s Singapore-based subsidiary into its Indian arm, Yuzhan Technology India, according to a filing on the London Stock Exchange.
Located in Tamil Nadu, Yuzhan Technology India produces electronic components and assembles iPhones. This move aligns with Apple’s broader strategy to expand its manufacturing footprint in India amid growing trade tensions between the US and China.
Recent reports suggest Apple has informed India’s Ministry of Communications of plans to shift all iPhone assembly from China to India. Apple CEO Tim Cook reportedly confirmed during a quarterly earnings call that the majority of iPhones sold in the US will soon be made in India.
With expectations of over 60 million iPhones being sold annually in the US by 2026, Apple will need to significantly boost production in India. Currently, about 20% of iPhones are assembled there — a figure worth $22 billion in the year ending March, representing a 60% rise. Despite this growth, China still handles around 80% of Apple’s global production.
Apple’s pivot to India is largely driven by US tariffs on Chinese goods imposed by President Donald Trump, which have raised concerns over supply chain stability and potential iPhone price hikes.
While Trump has reportedly cautioned Apple CEO Tim Cook against expanding operations in India, analysts note that setting up manufacturing in the US would be costly and time-consuming. According to Sonam Chandwani of KS Legal & Associates, such a move could double iPhone prices, potentially pushing them to $3,500 and negatively impacting demand and Apple’s market share.
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