Apple is significantly expanding its manufacturing presence in India by setting up two new iPhone assembly plants – one by Tata Electronics and the other by Foxconn. The expansion is part of Apple’s larger strategy to diversify its supply chain and reduce reliance on China, especially as trade tensions between the US and China escalate.
Tata Electronics has begun operations at a new facility in Hosur, Tamil Nadu. The plant is currently assembling older iPhone models on the same production line, which is a strategic start. At the same time, Foxconn – Apple’s largest contract manufacturing partner – is preparing to launch a massive facility in Bengaluru, Karnataka.
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According to a Reuters report, the upcoming Foxconn plant represents an investment of $2.6 billion and initial production is expected to begin in a matter of days. Specifically, the Bengaluru facility will focus on assembling the upcoming iPhone 16 and iPhone 16e models. Once fully operational, the plant is expected to produce 300 to 500 iPhones per hour and employ around 50,000 workers by the end of 2027.
The move to India comes amid rising tariffs imposed by the US government on Chinese imports, prompting companies like Apple to urgently rethink their production and logistics strategies. In fact, when the tariffs were first imposed, Apple had to ship iPhones from India to the US in an emergency airlift to meet demand.
According to tech journalist Mark Gurman, Apple aims to eventually manufacture all iPhones sold in the US in India. The goal is to reduce import duties and better manage logistics. However, Gurman also points out that this shift may not be seamless. While India can handle the assembly of existing models like the iPhone 16, future iterations, such as the iPhone 18 and a rumoured foldable iPhone, could face challenges due to their complex designs. So far, Apple has never started producing a completely new iPhone design outside of China. Still, this aggressive shift reflects Apple’s growing commitment to India as a manufacturing powerhouse and a key part of its long-term global strategy.
