Hon Hai Precision Industry Co. (Foxconn), the main assembler of Apple’s iPhones, has committed $1.5 billion to its Indian subsidiary.
The investment is said to be made through its Singapore-based unit,according to the reports. In addition to expanding in India, Hon Hai is also said to be investing more in the US.
These moves are believed to be part of a broader strategy to reduce exposure to geopolitical risks, including the impact of tariffs on Chinese-made goods.
Apple is reportedly seen to be accelerating its efforts to move a major portion of iPhone manufacturing out of China. The move highlights Apple's growing shift toward India amid global supply chain changes.The goal is to produce most of the iPhones sold in the United States from India by the end of March, next year amounting around $22 billion, which is nearly 60 percent increase in output from the previous year. This shift is said to be against the encouragement from the US President Donald Trump, who recently urged Apple CEO Tim Cook to manufacture in America rather than building new factories in India.
Apple has relied on Chinese factories for iPhone production for long time for now.
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As there is currently no iPhone manufacturing in the US, the company has pledged to invest $500 billion in the US and increase domestic hiring over the next four years.
Minister for Electronics and Information Technology (MeitY) Ashwini Vaishnaw recently announced that Apple exported iPhones worth over rupees 1.5 trillion ($17.4 billion) in the financial year ending March 2025. This marks a significant milestone in Apple’s strategy to move manufacturing out of China.