Apple’s decision to expand iPhone production outside of China has become increasingly apparent through its key partner Foxconn’s ambitious developments in India. After decades of concentrating assembly lines primarily within China, Apple and Foxconn are strategically diversifying in response to geopolitical unpredictability, supply chain vulnerabilities, and emerging market potential. This transition is not just a shift in geography but a complex reshaping of global manufacturing dynamics, with India rapidly emerging as a critical hub for the iconic smartphone’s assembly.

India’s Rising Manufacturing Footprint and Investments

Foxconn’s aggressive expansion across India illustrates the seriousness with which Apple is executing its diversification. At the forefront is the new Foxconn facility in Karnataka, located strategically near Bengaluru’s international airport within the Devanahalli Information Technology Investment Region (ITIR). This plant is set to become Foxconn’s second-largest manufacturing center after its colossal Zhengzhou factory in China. The facility’s readiness for initial shipments as soon as June 2025, confirmed by senior Apple executives’ visits, demonstrates robust confidence in its operational capacity. Local government officials anticipate notable economic benefits for Karnataka, reflecting how high-tech manufacturing expansion can generate regional development.

In addition to Karnataka, Foxconn is advancing production at the Tata Electronics plant in Tamil Nadu. Tata, a formidable player in India’s industrial landscape, is doubling its output of iPhone enclosures at its Hosur facility to meet Apple’s late-year product launch demand. Complementing this, Foxconn is also erecting a smartphone display module facility within Tamil Nadu, underscoring a diversified, multi-pronged approach to rapid capacity buildup. Collectively, these expansions aim to nearly double India’s iPhone production from around 12 million to approximately 25–30 million units by 2025. This surge would position India as a significant contributor to Apple’s global inventory.

Workforce, Technology Transfer, and Geopolitical Complexity

Beyond mere capacity, the transition to India entails considerable workforce development and technology transfer initiatives to maintain Apple’s stringent quality standards. Experienced engineers from China and Taiwan have contributed to training Indian workers, equipping them with the precise skills required for high-end electronics assembly. However, this knowledge exchange is not without complications. Amid rising diplomatic tensions, Foxconn has halted the deployment of Chinese workers to Indian factories, substituting Taiwanese personnel instead. This substitution reveals the intricate geopolitical layers underpinning global supply chains, where political sensitivities influence operational decisions.

Despite these challenges, Foxconn India’s metrics reveal a remarkable growth trajectory. Fiscal year 2024-25 revenues are projected to exceed $20 billion, and workforce numbers have climbed by 65% to roughly 80,000 employees. Such rapid expansion, amidst diplomatic headaches and training complexities, evidences the determination to solidify India as a manufacturing powerhouse for Apple’s flagship product.

Strategic Diversification and India’s Manufacturing Ambitions

This pivot away from China aligns with Apple’s broader corporate strategy to reduce reliance on a single dominant manufacturing base. The US-China trade tensions, tariff uncertainties, and pandemic-related disruptions have exposed vulnerabilities in over-centralized supply chains. As a result, Foxconn is simultaneously investing in multiple global sites—including India, the United States (notably Texas), Mexico, and Thailand—to establish a multi-polar manufacturing network.

India’s rise benefits not only Apple and Foxconn but also fits within the country’s ambitions to become a global electronics manufacturing hub. The Indian government has actively backed these initiatives through incentives under its Electronic System Design and Manufacturing (ESDM) policy, reportedly granting Foxconn aid worth around Rs 6,970 crore. Coupled with India’s expanding domestic smartphone market and a growing skilled labor force, the environment has become increasingly ripe for large-scale production.

While India rapidly scales up, China’s historic “iPhone City” in Zhengzhou remains unrivaled in size and output, producing around half a million iPhones daily with an army of hundreds of thousands of workers. Therefore, this geographic shift is best understood as a strategic risk mitigation and incremental growth effort rather than a wholesale departure from China.

The evolving landscape of Apple’s supply chain reflects a calculated balancing act: preserving China’s manufacturing strength while simultaneously building resilience and capacity through a geographically diversified approach led by India and supported by other key locations.

In essence, Foxconn’s Indian expansion signals a major transformation in global electronics manufacturing. Through state-of-the-art plants in Karnataka and Tamil Nadu, dedicated workforce training, government incentives, and significant capital investment, India is fast becoming an indispensable node in Apple’s production network. Although geopolitical complexities and training challenges persist, the evidence suggests that India will play a central role in shaping the future of iPhone supply chains, representing a pivotal shift with far-reaching implications for the technology industry worldwide.

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