Hon Hai Precision Industry Co, widely known as Foxconn and the primary assembler of Apple Inc’s iPhones, has committed US$1.5 billion (RM6.4 billion) to its Indian subsidiary, reinforcing its strategic pivot away from China. The investment, made via Foxconn’s Singapore-based unit, was disclosed in a regulatory filing on Monday.
The move is part of Foxconn’s broader initiative to expand its manufacturing footprint in southern India. The Taiwan-based electronics giant is actively developing new facilities and boosting production capacity in the region. The company has not issued an official statement in response to media inquiries regarding the investment.
Apple is intensifying its efforts to diversify its supply chain by shifting a significant portion of its iPhone production to India. The company aims to source the majority of iPhones sold in the United States from India by the end of next year. The transition has drawn criticism from former US President Donald Trump, who recently disclosed that he urged Apple CEO Tim Cook to halt the development of production facilities outside the United States.
This latest development underscores Apple’s ongoing efforts to reduce exposure to China amid rising geopolitical tensions and trade uncertainties. Although Apple has pledged to invest US$500 billion domestically over the next four years and hire more American workers, the company currently has no smartphone manufacturing operations within the United States. The majority of iPhone production remains concentrated in China.
Foxconn is simultaneously scaling up its investments in the United States as part of its risk mitigation strategy in response to potential future tariffs and political pressures.
India has emerged as a key manufacturing hub in Apple’s global supply chain. In the 12 months ending March, Apple assembled US$22 billion worth of iPhones in India, representing a nearly 60% increase in output year-on-year.
Foxconn’s southern India facility serves as the central hub for the production of India-assembled iPhones. Tata Group, through its electronics manufacturing arm, has also become a significant partner in Apple’s India operations, following its acquisition of Wistron Corp’s local business and the management of Pegatron Corp’s Indian activities.
-Bloomberg
