Foxconn Strengthens India with $1.5B Manufacturing Investment

• Foxconn invests $1.5B in India to support Apple’s shift from China.
• Funds will expand iPhone assembly in Tamil Nadu.
• India gains traction as a global manufacturing hub.

Foxconn has announced an investment of 1,5 billion USD into its India-based subsidiary, Yuzhan Technology India. This investment is part of Apple's diversification strategy to lessen its dependence on Chinese manufacturing.

Apple's shift from China was bolstered by Foxconn’s investment as U.S. tariffs impacted Apple's production operations in China. According to a filing made by Foxconn, its unit located in Singapore has agreed to purchase 12.77 billion shares at 10 rupees each which totals to 127.74 billion rupees, or 1.5 billion USD.

Yuzhan Technology, located in the Tamil Nadu region of India, plays a critical support role in Apple's assembly of iPhones and for electronic component manufacturing. This bolsters Apple's priorities to lessen its affiliated reliance from China and strongly grow its importance in the Indian market.

Also Read: Commerce Secretary Sunil Barthwal highlights India as a competitive global hub

India is rapidly becoming a preferred production hub, due to the country’s government implementing production-linked incentive (PLI) schemes to drive electronics production from India.

Amid many corporations impacted by supply chain distruption and rising geopolitical uncertainty, Apple and companies in mobile and other technology spaces are beginning to look to India as a viable alternative.

This investment also supports Apple’s contingencies on supply chain resilience long term, while accelerating India's growing importance to the global electronics production value change.