Apple supplier Foxconn to invest $1.5 billion in India unit

By Admin

22 May, 2025

In a strategic move to diversify its supply chain, Apple supplier Foxconn has announced a major investment of $1.5 billion in its India unit, signaling a significant step in Apple’s ongoing effort to reduce reliance on Chinese manufacturing.

Strengthening India as a Manufacturing Hub

Amid rising geopolitical tensions and trade tariffs imposed by U.S. President Donald Trump on China, Apple has been actively exploring alternatives to mitigate the risks of a China-centric supply chain. India has emerged as a strong contender, offering a vast labor force, improving infrastructure, and growing support from the Indian government.

To solidify this transition, Foxconn, a key assembler of iPhones, revealed in a London Stock Exchange filing that its Singapore-based subsidiary will acquire 12.77 billion shares at ₹10 each, totaling ₹127.74 billion ($1.5 billion) in Yuzhan Technology India, its unit based in Tamil Nadu.

Yuzhan Technology India: A Critical Asset

Yuzhan Technology India is Foxconn’s operational hub in India, responsible for manufacturing electronic components and assembling Apple’s iPhones. This massive investment highlights the unit's growing importance in Apple's global production network.

The move comes shortly after Apple ramped up its production in India in March, exporting approximately 600 tons of iPhones worth $2 billion to the United States. This reflects the company’s confidence in India’s capability to match global manufacturing standards.

A Response to Tariffs and Supply Chain Uncertainty

Apple’s strategy to shift manufacturing to India aligns with its broader objective to shield itself from the economic uncertainties arising from the U.S.-China trade war. As tariffs on Chinese imports continue to impact costs, India provides a much-needed buffer by offering a stable and cost-effective alternative.

According to Reuters, the ongoing tariff concerns have raised fears of potential iPhone price hikes and supply chain disruptions, compelling Apple to accelerate its India plans.

Conclusion

With Foxconn’s $1.5 billion investment, India is poised to become a cornerstone in Apple's global manufacturing strategy. This not only boosts India's ambition to become a global electronics hub but also marks a new chapter in the global tech supply chain — one that is more diversified, resilient, and India-focused.

As Apple continues to bet big on India, we can expect further investments and expansions that will reshape the future of smartphone manufacturing worldwide.