Apple's iPhone Shift to India Accelerates With $1.5 Billion Foxconn Investment [Report]

Hon Hai Precision Industry Co., Apple's main iPhone assembler, is funneling an additional $1.5 billion into its Indian operations, reports Bloomberg. This move is another clear signal of Apple's ongoing strategy to diversify production away from China and significantly boost its manufacturing capabilities in India, a trend that has been picking up serious pace.

The Taiwan-based company, also known as Foxconn, confirmed the substantial investment in an exchange filing on Monday, stating it was made through its Singaporean subsidiary. Hon Hai has been actively expanding its presence in southern India, constructing new facilities and increasing production capacity. The company did not provide further comment on the investment when approached.

This latest funding supports Apple's reported aim to source most iPhones sold in the U.S. from India by late 2026. That production shift caught the attention of U.S. President Donald Trump, who recently said he'd asked Apple CEO Tim Cook to stop building more plants in India and instead focus on U.S. manufacturing.


President Trump's position seems to be adding to the uncertainty surrounding Apple's diversification plans, as the company looks to navigate potential tariffs and geopolitical instability. While Apple manufactures the majority of its iPhones in China and has no current smartphone production in the United States, it has pledged to spend $500 billion domestically over the next four years.

Hon Hai itself is also increasing investments in the U.S. to navigate potential geopolitical impacts, including further tariffs. The bulk of iPhones currently assembled in India come from Hon Hai's facilities in the southern part of the country. Tata Group's electronics manufacturing arm has also become a key player, having acquired Wistron Corp.'s local operations and now managing Pegatron Corp.'s Indian facilities. Recent reports indicate that a new Tata plant recently started iPhone production, with another major Foxconn facility in Bengaluru expected to start shipments shortly.

The increased focus on India is already noticeable in export numbers, with Apple's iPhone exports from the country reportedly surging 116% in April 2025 compared to the previous year. Apple assembled iPhones worth $22 billion in India in the 12 months through March 2025, a nearly 60% increase year-over-year.

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