Foxconn, the main iPhone producer for Apple, is investing $1.5 billion in India as it moves iPhone production out of China. Such a decision is necessary as trade and tariff disputes between the US and China rise, pushing Apple and its suppliers to lessen their reliance on China.

Why India? Mixing Strategy Due to Trade Taxes

Making more products in India is part of Apple’s strategy to rely on the country as an important backup production centre. In March 2025, more iPhones were produced in India by Apple and around 600 tons of them were exported to the US at a total value of $2 billion. By doing this, companies are mitigating possible risks connected to the US-China conflict and tariffs that might lead to iPhone assemblers’ additional expenses. Due to current geopolitical conditions, President Donald Trump has requested Apple’s CEO, Tim Cook, reconsider India as a possible site for expansion. However, Apple is determined to increase manufacturing in India and rely less on China.

Foxconn’s investment demonstrates that India has what it takes to be a significant centre for manufacturing electronics. It is building new facilities and expanding its production to meet both the demands in India and the growing demand from overseas. By the end of 2026, Apple hopes to ship almost all the iPhones sold in American markets from India, marking a vital role in its overall supply chain for India. Other major contributors to India’s rising manufacturing output are Tata Group’s electronics group and Pegatron, alongside Foxconn.

Overall Impacts of Tech Supply Chain

Such a big investment shows that global tech companies are moving their factories to different countries due to uncertainty in the world. As most of its devices are produced in China, whose factories are now included on the US government’s blacklist, Apple plans to move more production to India because of its positive policies and developing infrastructure. The company is also making large investments in the US to expand its risk management, an indication that global organizations adapt their actions to new market and political factors. By spending $1.5 billion in India, Foxconn is significantly reshaping how Apple’s products are made. As Apple commits to purchasing more iPhones locally, India is in a good position to support the global supply chain, helping Apple manage tariffs, troubles arising from politics and changing market trends.