Days after Trump’s ‘don’t build iPhones in India’ remark, Apple supplier Foxconn invests $1.5 billion in Tamil Nadu unit

Days after US President Donald Trump urged Apple CEO Tim Cook to halt iPhone production in India and bring manufacturing back to the United States, Apple supplier Foxconn has announced a fresh $1.5 billion investment in its India unit.

The Taiwan-based electronics manufacturer confirmed the move in a filing to the London Stock Exchange, as the iPhone maker continues its strategic shift away from China, which remains caught in tariff wars and supply chain uncertainties.

Foxconn deepens India bet with major capital infusion

Foxconn’s Singapore-based subsidiary will acquire over 12.77 billion shares in Yuzhan Technology India, its Tamil Nadu-based unit, at Rs 10 each, totalling Rs 127.74 billion (approximately $1.5 billion). Post the transaction, Foxconn Singapore will hold 99.99999999 per cent ownership of the Indian entity, while another Foxconn arm will hold a single share.

Yuzhan Technology assembles Apple iPhones and manufactures key electronic components for the tech giant.

Apple keeps Indian plans on track amid Trump pushback?

The investment comes amid heightened political rhetoric from Trump, who said in Doha that Apple should manufacture products for the US market within America, not India. He claimed to have told Tim Cook, “I don’t want you building in India if you want to take care of India,” suggesting Apple may be penalised if it continues exporting India-made iPhones to the US.

Despite these comments, Apple has reportedly reassured Indian officials that its long-term plans for the country remain unchanged.

India-made iPhones already powering US shipments

Apple’s iPhone exports from India are steadily growing. In March 2025 alone, it shipped over 600 tonnes of iPhones worth $2 billion to the US. According to S&P Global Market Intelligence, 97.6 per cent of iPhones exported from India in March went to the United States, a 219 per cent surge compared to previous months.

India now produces about 15 per cent of Apple’s annual iPhone output, with over 40 million units made annually in the country. This number is expected to rise as both Foxconn and Tata Electronics expand their local assembly capacity.

PLI, labour, and global shifts: Why India is the new hub

Since 2017, when Apple began iPhone manufacturing in India, the country has emerged as a key alternative to China. The Prime Minister Narendra Modi-led government's Production-Linked Incentive (PLI) scheme, part of the larger 'Atmanirbhar Bharat' and 'Make in India' campaigns, has played a central role in attracting global electronics manufacturers.

Apart from policy support, India offers political stability, a skilled labour force, and a growing domestic market. These factors, coupled with rising tensions in East Asia and lessons from the COVID-19 pandemic, have prompted many companies to diversify supply chains.

Build for India, not for export? Trump’s protectionist stance returns

Trump’s remarks are a continuation of his long-standing push for local manufacturing. He claimed Apple had pledged $500 billion in investment in the US over four years and said the company would now be “upping their production in the United States.”

He also suggested Apple could continue producing iPhones in India, but only for the Indian market, not for export to the US. Trump's comments come as he seeks a second term with promises of revitalising American manufacturing.

Apple’s India ecosystem: Jobs, exports and innovation

India’s Apple ecosystem is one of the largest job creators in the country, employing around 2 lakh people across vendors and assembly units. In FY25, the country exported iPhones worth Rs 1.5 lakh crore, according to Union Minister Ashwini Vaishnaw, PTI reported.

Apple’s strategic shift isn’t just about tariffs. It's about building resilience. The firm is reportedly planning to move all iPhone assembly for the US market to India, reducing its dependence on China as global trade dynamics continue to evolve.

Even though recent US-China trade talks in Geneva led to some de-escalation, the damage to long-term trust and stability has already been done. Financial markets have reacted positively to tariff rollbacks, but supply chain planners aren’t taking chances.