Apple Supplier Foxconn Invests $1.5 Billion in India to Expand iPhone Production
Foxconn, a leading supplier for Apple’s iPhone production, has made a significant investment in India to expand its manufacturing footprint outside of China. The company has allocated an additional $1.5 billion (approximately ₹12,500 crore) through its Singapore-based subsidiary, which has acquired 12.7 billion shares in its Indian operations. This move is part of a broader strategy to diversify production and reduce reliance on Chinese manufacturing hubs.
The investment is directed toward Yuzhan Technology India, a key player in the supply chain for Apple’s smartphones. Based in Tamil Nadu, Yuzhan is responsible for manufacturing essential components for the iPhone. According to government sources, five semiconductor units are currently under construction in India, with the new Foxconn investment bringing the total number of semiconductor projects to six.
As part of this expansion, the Indian government has approved the establishment of a semiconductor facility near Noida airport. This project, a joint venture between Foxconn and HCL Group, is valued at ₹3,700 crore and is designed to produce display driver chips used in smartphones, laptops, and other electronic devices. The facility is expected to process 20,000 wafers per month and produce up to 36 million units monthly.
India’s push to develop its semiconductor industry is supported by a combination of government initiatives, infrastructure development, and academic collaboration. Over 270 institutions and 70 startups are working on advanced chip design, with 20 student-designed chips already completed at SCL Mohali. Major global suppliers, including Applied Materials and Lam Research, have also established operations in India, while companies like Merck, Linde, Air Liquide, and Inox are expanding to support the industry.
Meanwhile, Foxconn is also investing heavily in a 300-acre manufacturing plant in Devanahalli, Karnataka. This facility, which is part of Apple’s plans to shift iPhone production from China to India, is located about 34 km from Bengaluru’s Kempegowda International Airport. The first phase of the project, spanning 2023–2024, involved an investment of approximately ₹3,000 crore, with a similar amount planned for the second phase (2026–2027).
Apple CEO Tim Cook has publicly stated that most iPhones sold in the United States will soon be produced in India. The transition is already underway at Foxconn’s Devanahalli plant, where operations continued without disruption. Construction of worker dormitories, a standard feature of Foxconn’s model, is also progressing. Foxconn has invested $2.56 billion (over ₹21,000 crore) in the Devanahalli facility, aiming to produce around 100,000 iPhones by December of this year.
Despite concerns raised by U.S. President Donald Trump, who reportedly told Apple CEO Tim Cook that he did not want Apple to build in India, Apple remains committed to its strategy of shifting iPhone production to India. This move is part of a broader effort to reduce supply chain risks and tap into India’s growing manufacturing capabilities.