Foxconn invests $1.5 billion in India operation as Apple shifts production away from China
It’s a strategic play to de-risk Apple’s supply chain from geopolitical friction.
The U.S.–China trade tensions didn’t start yesterday, but April’s sharp escalation reminded everyone just how fragile the relationship still is.
The conflict took a new turn in April after the Trump administration launched sweeping tariffs on Chinese imports and triggered a tit-for-tat trade war. Tariff rates soared—on some goods, hitting as high as 145%—and tech giants like Apple, heavily reliant on Chinese manufacturing, were suddenly in a dangerous bind.
Emmanuel Oyedeji
Although both countries have rolled back the rhetoric and paused new tariffs, the tension hasn't fully disappeared.
Now, US companies that have been eyeing trade-friendlier countries like India and Vietnam as safer ground and have begun sprinting their diversification processes.
In a recent development, Foxconn, Apple’s largest iPhone maker, just dropped $1.5 billion into its India operations—a major signal that Apple is serious about rebalancing its supply chain. The investment, made through a Singapore-based subsidiary, was disclosed in a stock exchange filing earlier this week. It’s part of a broader strategy to reduce dependence on China, where Apple has historically assembled the majority of its devices.
Emmanuel Oyedeji
India, once a minor player in Apple’s global operations, is now at the centre of its manufacturing roadmap. Foxconn has been rapidly expanding its facilities in southern India, while other key players—Tata Electronics and Pegatron—are ramping up production as well.
Together, they’re helping Apple turn India from a side bet into a full-fledged manufacturing powerhouse. According to Bloomberg, Apple assembled $22 billion worth of iPhones in India in the 12 months ending March 2025, up nearly 60% from the year before and over 260% from April 2023.
Emmanuel Oyedeji
In fact, half of all iPhones sold in the U.S. last quarter were made in India, according to Apple's fiscal Q2 results. Apple wants that number even higher—nearly all iPhone 18s sold in the U.S. are expected to come from India by 2026.
The shift is Apple hedging against geopolitical volatility, especially the kind of tariff turbulence that defined the past month.
With new factories, growing supplier networks, and billions in fresh investment, Apple is playing the long game. As the world’s second-largest smartphone market, India offers not just cheap labour, but also future customers. And as the company retools its global footprint, India is no longer a fallback. It’s the future.
