Apple Supplier Hon Hai Invests $1.5 Billion to Expand Operations in India

Hon Hai Precision Industry Co., Apple's main assembler of iPhones, has invested $1.5 billion in its Indian arm, The Economic Times reported. The investment, channeled via its Singaporean unit, was revealed in a May 19 stock exchange filing.

The capital injection aims to bolster Hon Hai’s ongoing expansion efforts in southern India, where new manufacturing facilities are under construction and production capacity is being scaled up. Specific details about the plans have yet to be revealed by the company.

Apple’s Move to Shift iPhone Production to India

Apple is ramping up efforts to shift much of iPhone production out of China and aiming India as a primary production base. The tech company has planned to make most of the iPhones being sold in the United States next year produced in India.

This transformation in strategy has been criticized by the previous US President Donald Trump, who has recently called out Apple CEO Tim Cook to stop the opening of new factories in India and focus on manufacturing in the United States instead. Trump's call is a reflection of larger issues of tariffs and geopolitics.

In the past, Apple relied extensively on Chinese plants for iPhone production. Currently, none of the iPhones are being manufactured in the US, but Apple has pledged to invest $500 billion in the country and increase hiring in the next four years.

Along with its growth in India, Hon Hai—commonly referred to as Foxconn—is ramping up investments in the US. These actions are a component of an overall strategy to reduce geopolitical risks, especially those related to tariffs on Chinese-produced goods.

Increasing Manufacturing Presence in India

Foxconn's plants in southern India—spreading across Tamil Nadu, Karnataka, and Telangana—are now the main assembly locations for iPhones in India. Other major suppliers are getting into the act too; specifically, the Tata Group has strengthened its footprint by acquiring Wistron's operations in India and stepping in to acquire Pegatron's local operations.

Apple's value of production in India was about $22 billion worth of iPhones for the 12 months through March, up almost 60% from a year ago.

India's Electronics and Information Technology Minister Ashwini Vaishnaw recently said Apple iPhone exports crossed ₹1.5 trillion (§17.4 billion) in the financial year that concluded in March 2025. The milestone highlights Apple's strategic shift to diversify production from China. India's total smartphone exports crossed ₹2 trillion during the same period, recording 54% year-on-year growth.

Strategy Driven by Supply Chain Disruptions

Apple's increased emphasis in India comes after the disruptions caused by the COVID-19 pandemic, which exposed the frailties of having a major manufacturing base in one place.

Since then, Apple has worked with manufacturers such as Foxconn and Tata to scale up manufacturing capacity in India. Tata's acquisitions of Wistron and Pegatron plants have solidified its position as a strategic partner in Apple's India manufacturing strategy.

At the same time, increasing US-China tensions and the specter of draconian tariffs—up to 50% in some cases—have pushed Apple and other multinational corporations to diversify their supply chains. India and Southeast Asia are assuming greater significance in Apple's manufacturing network, but according to experts, an outright abandonment of China is not expected in the foreseeable future.