In a significant development for India’s electronics manufacturing sector, Taiwanese technology giant Hon Hai Precision Industry Co., better known as Foxconn, has announced a $1.5 billion investment to strengthen its operations in India. The move is widely seen as part of Apple’s broader strategy to diversify its supply chain and reduce dependence on China due to escalating geopolitical and trade tensions.
According to a regulatory filing on the Taiwan stock exchange, Foxconn’s Singapore-based subsidiary has acquired 12.7 billion shares in its Indian arm, Yuzhan Technology India. While specific details of the transaction remain undisclosed, local reports confirm that the unit manufactures smartphone components in the southern state of Tamil Nadu.
The investment follows recent remarks by Apple CEO Tim Cook, who stated that the majority of iPhones sold in the United States are expected to be manufactured in India in the near future. The shift signals Apple’s commitment to mitigating supply chain risks and tapping into India’s growing capabilities as a global manufacturing hub.
Foxconn’s expansion in India also coincides with its joint venture with HCL Group to establish a semiconductor fabrication facility in northern India. Approved by the Indian government, the project is set to attract an investment of ₹37 billion (approximately $432 million). The plant will produce critical display driver chips used in smartphones, computers, and automotive electronics, with a projected capacity of 36 million units per month.
India has positioned itself as an alternative manufacturing destination through a series of policy measures and production-linked incentives. The government’s emphasis on self-reliance in chip production is aimed at reducing import dependency and enhancing national security.
This latest infusion of capital by Foxconn adds momentum to the rapid growth of India’s electronics manufacturing sector. Apple has reportedly produced iPhones worth $22 billion in India in the past financial year, a 60% increase from the previous year. Minister for Electronics and IT Ashwini Vaishnaw also confirmed that iPhone exports crossed ₹1.5 trillion ($17.4 billion) during the same period, marking a major milestone for India’s role in Apple’s global operations.
Despite political headwinds, including U.S. President Donald Trump’s disapproval of Apple’s increased production in India, both Apple and Foxconn appear committed to scaling their operations in the region as part of a global realignment strategy.
Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.
"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!
