Apple Partner Hon Hai Invests $1.5 Billion in India Unit

• Hon Hai is investing $1.5 billion to expand iPhone production in India.
• Apple is moving production from China to India to avoid geopolitical risks.
• India’s iPhone output rose 60% to $22 billion last year.

Hon Hai Precision Industry Co, the primary producer of Apple Inc's iPhones, will invest $1.5 billion into its Indian unit as manufacturing moves from China.

The Taiwan-based firm announced in a stock exchange report on Monday that it had invested in its subsidiary in Singapore. Hon Hai, which is constructing new facilities and increasing production capacity in southern India, did not promptly reply to an emailed request for feedback.

Apple aims to import the majority of iPhones sold in the US from India by the close of next year, prompting the anger of US President Donald Trump, who mentioned last week that he requested Apple CEO Tim Cook to halt construction of factories there.

Also Read: Manufacturing iPhones in US Instead of India May Raise Price to $3,000

Trump's remarks hasten a transition away from China to lessen risks associated with tariffs and geopolitical conflicts. Apple manufactures the majority of its iPhones in China and lacks smartphone production in the US - although it has committed to increasing its workforce domestically and vowed to invest $500 billion in the country over the upcoming four years.

Hon Hai is likewise boosting its investments in the US to reduce geopolitical risks like the effects of additional tariffs.

Most of the iPhones manufactured in India are put together at Hon Hai's facility in southern India. The electronics manufacturing division of Tata Group, which acquired Wistron Corp’s domestic business and oversees Pegatron Corp’s activities in India, is another important supplier.

Apple produced $22 billion worth of iPhones in India during the year ending in March, raising output by almost 60 percent compared to the prior year.