Apple’s strategic shift away from China has taken a significant step forward with a $1.5 billion investment by its top supplier, Foxconn, in a new manufacturing facility near Chennai, Tamil Nadu. The investment, routed through Foxconn’s Singapore-based subsidiary, involves the purchase of 12.77 billion shares in Yuzhan Technology India, which is responsible for producing electronic components and assembling iPhones.
This move is part of Apple’s broader strategy to diversify its supply chain, reducing reliance on China amid ongoing geopolitical tensions and trade tariffs. The new facility, located in the Oragadam industrial hub adjacent to Foxconn’s existing iPhone assembly plant, will focus on assembling display modules — a critical component in iPhones. Once operational, the plant is expected to be one of the largest investments in India’s electronics sector and create approximately 14,000 jobs.
Apple has rapidly increased its manufacturing footprint in India over the past year. In the 12 months through March, the company assembled $22 billion worth of iPhones in India, marking a production increase of nearly 60 percent compared to the previous year. The bulk of these devices are assembled at Foxconn’s factories in southern India, with additional contributions from Tata Group and other suppliers.
The Indian government’s production-linked incentive schemes and infrastructure incentives have played a key role in attracting global electronics manufacturers like Apple and Foxconn. Tamil Nadu, in particular, is positioning itself as a major hub for Apple product manufacturing, with investments from multiple component suppliers and the creation of tens of thousands of jobs.
The $1.5 billion investment underscores Apple’s commitment to its “China-plus-one” strategy, aiming to mitigate risks from supply chain disruptions and tariff policies. The company has also indicated plans to import a majority of iPhones sold in the United States from India by the end of next year.
Despite political pressure from the United States to bring manufacturing back home, Apple continues to expand its presence in India, signalling a long-term shift in its global production strategy. The Chennai investment not only strengthens Apple’s supply chain resilience but also cements India’s role as a critical player in the global electronics manufacturing landscape.
