Apple Supplier Foxconn Puts ₹11,250 Crore Into India, Lessens Dependence on China

It is a strategic victory for India and a setback to China's dominance in manufacturing as Apple's leading contractor Foxconn (Hon Hai Precision) made a huge ₹11,250 crore ($1.48 billion) investment in its Tamil Nadu facility, Yuzhan Technology (India) Private Limited, in the last week. This is one of the largest single foreign investments in India's electronics industry and represents a spectacular fast-tracking in Apple's international supply chain shift away from China.

 

The investment, through Foxconn's Singapore subsidiary, will quickly increase iPhone manufacturing capacity in southern India. Apple CEO Tim Cook declared that most iPhones in the US would be produced in India from as early as the June quarter, a feat that reflects India's growing contribution to international tech production.

 

India's exports of iPhones touched ₹1.5 trillion ($17.4 billion) during FY25, while overall smartphone exports stood at over ₹2 trillion, a 54% increase from the previous year. Foxconn India revenue has doubled to over $20 billion on the back of the sharp rise in iPhone production.

 

The production-linked incentive (PLI) schemes of the Modi government, policy continuity, and efforts at high-tech manufacturing have been pivotal in drawing Foxconn and other international giants, and diminishing dependence on China in the face of rising US-China trade tensions and tariff threats.

 

Tata Group's takeover of Wistron and Pegatron's Indian facilities further enhances the local supply chain, making India a key hub for Apple's future growth.

 

Experts forecast that India may supply as much as 20% of Apple's worldwide iPhone manufacturing by 2025-end, revolutionizing the world electronics scene.

 

Source: Business Standard, Economic Times, CNBC-TV18, Times of India