Chief supplier to Apple, Foxconn, is continuing to expand in India with another new investment amounting to $1.5 billion, indicating, against a backdrop of escalating tensions, Foxconn’s plans to raise its commitment to diversifying production away from China.
The funds come through Foxconn’s Singapore-domiciled subsidiary, which has injected 12.7 billion shares of its Indian arm, Yuzhan Technology India. While not much has been disclosed about the investment, it is believed to expand its local manufacturing capability in India, specifically in Tamil Nadu, where Foxconn already makes smartphone components.
This aligns with India’s long-term ambition of becoming a global manufacturing hub. In the past few years, New Delhi has significantly subsidised and incentivised companies globally to establish manufacturing initiatives in India, especially electronics.
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This is a working policy framework. Many companies, like Apple, are now beginning to shift production to India to avoid the complexities of geopolitical issues and tariffs on China.
Apple’s CEO, Tim Cook, recently stated he envisions a day when most iPhones sold in the U.S. will be “Made in India”. That objective seems more achievable now with this Foxconn investment.
It also sounds like the facility will have a capacity of 36 million units a month, which is a dramatic increase in capacity. In addition, India’s interests in chip-making and component production align well with national objectives around supply chain security and technology self-sufficiency.
