Apple Expands India Supply Chain with $1.5 Billion Foxconn Investment
Apple is set to expand its manufacturing footprint in India with the construction of a $1.5 billion display module plant near Chennai, marking a significant shift in the company’s supply chain strategy. This development comes as the tech giant continues to diversify its production beyond China, despite political pressures from President Donald Trump to bring manufacturing back to the United States.
The facility, operated by Foxconn, will be a key component in Apple’s supply chain, supplying display modules for its iPhones. The plant is located in the state of Tamil Nadu, near Foxconn’s existing iPhone manufacturing facility in Chennai, and is expected to create approximately 14,000 jobs. The investment, announced by Foxconn’s Indian subsidiary Yuzhan Technology India, is part of a broader strategy to strengthen Apple’s presence in India.
The move reflects Apple’s growing reliance on India as a manufacturing hub, with the company planning to source all 60 million iPhones sold annually in the United States from India by the end of 2025. This shift is part of a long-term strategy to reduce dependence on China, which remains Apple’s largest manufacturing base, and to mitigate supply chain risks associated with global events like the pandemic.
India’s electronics industry has seen significant growth, driven by production-linked incentives from the Modi government. The country has become the world’s second-largest smartphone market after China, and the expansion of Apple’s supply chain is expected to further boost India’s manufacturing sector. Tamil Nadu’s state government has approved a $1.54 billion investment in the display module plant, which is part of a larger initiative to attract foreign investment and create jobs in the region.
While the move has been welcomed by some in India, it has also sparked political controversy, particularly with President Trump’s repeated calls for Apple to bring manufacturing back to the United States. Trump has criticized Apple’s decision to expand in India, arguing that it undermines American jobs and economic interests. However, Apple has not publicly responded to these criticisms.
Foxconn, a major supplier to Apple, has been operating in India for several years, but this new investment represents a significant step forward in the company’s presence in the country. The display module plant is expected to be one of the largest in India’s electronics industry, further solidifying the country’s role in the global tech supply chain.
The expansion of Apple’s supply chain in India is also part of a broader trend in the tech industry, with companies seeking to diversify production to reduce reliance on a single country. This trend has been accelerated by the pandemic, which disrupted global supply chains and highlighted the risks of over-reliance on any one manufacturing hub.
As Apple continues to expand its presence in India, the company is expected to play a key role in shaping the country’s manufacturing landscape. The new display module plant is a significant step in this direction, and could have far-reaching implications for India’s economy and the global tech industry.