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Foxconn, Apple's key supplier, is investing USD 2.2 billion across India and the US to expand its global manufacturing footprint beyond China. Of this, USD 1.49 billion will go into a new iPhone production facility in India via its Singapore arm, likely in Tamil Nadu or Karnataka. This follows an earlier USD 1.5 billion investment into its Tamil Nadu unit. India's skilled workforce, incentives, and rising demand make it an ideal hub. Meanwhile, USD 735 million is allocated to a US-based unit for data-centre and server module manufacturing. Foxconn aims to diversify into high-value manufacturing, including electric vehicles and advanced components.
Foxconn, Apple's top supplier and the world's largest contract electronics manufacturer, has secured approval from Taiwan's Investment Commission to move ahead with a USD 2.2 billion investment across India and the United States. This decision is part of Foxconn's intensified push to diversify its global manufacturing footprint beyond China, in response to geopolitical tensions, trade volatility, and Apple's strategic relocation of supply chains. Advertisement
A major chunk of this investment USD 1.49 billion will be routed through its Singapore-based subsidiary into Yuzhan Technology India Pvt Ltd. The funds will go toward setting up a full-scale manufacturing facility in India dedicated to iPhone production and critical component manufacturing. Though the specific state for the plant has not been officially confirmed, it is expected to be located in Tamil Nadu or Karnataka, where Foxconn already has operational experience and an established supplier network.
Just weeks earlier, the company had committed another USD 1.5 billion into Foxconn India's Tamil Nadu arm, FII, to enhance production capabilities and increase iPhone assembly output. Currently, Apple assembles iPhones through three major partners in India Foxconn, Pegatron, and Wistron (now acquired by the Tata Group).
For Foxconn, India offers a combination of skilled labour, government incentives under the Production Linked Incentive (PLI) scheme, and growing domestic demand for high-end electronics. India's iPhone production is projected to cross 60 million units this year, accounting for nearly 15% of Apple's global output.
Parallely, the Taiwanese electronics giant is also strengthening its foothold in the United States. A sum of USD 735 million has been earmarked for the creation of a new unit Project ETA (DE) LLC which will focus on the manufacture and assembly of data-centre equipment and server modules. While no detailed timeline or location for this US investment has been disclosed, the project is designed to serve cloud infrastructure clients and global data-centre operators amid soaring AI-driven demand for computing power.
Foxconn currently operates 223 facilities across 24 countries, including 12 in India and 54 in the Americas. The company has already begun positioning India not just as an assembly hub but also as a high-value manufacturing base. Over the past year, it has made multiple land acquisitions and entered joint ventures for component manufacturing. Moreover, the company is actively developing its non-Apple verticals, including electric vehicles and advanced component manufacturing. The new India facility may also support manufacturing of non-iPhone devices and provide backward integration for key components.
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