Foxconn has made a $1.5 billion investment into its India arm, a move that will almost certainly fund its expansion of iPhone production in the country.
India is growing as a production base for iPhones, as Apple diversifies its supply chain away from a China-centric model. Expanding in India requires resources, and one supply chain member is contributing more.
Hon Hai, also known as Foxconn, is investing $1.5 billion in its India business. In a stock exchange filing seen by Bloomberg on Monday, the investment is being made via the company’s subsidiary in Singapore.
While the reason for the investment is not mentioned, it is something that will almost certainly go towards Apple-related production.
It may also help fund the new semiconductor facility the India government approved earlier in May. The joint venture between Foxconn and HCL Group already has an investment of $433 million from the country’s government, and will produce up to 20,000 wafers per month, manufacturing up to 36 million display driver chips.
Though that plant may not necessarily make components for Apple directly, ministers have expressed hopes that the deal will lead to Apple chip production in the future.
Continued expansion
The investment is a continuation of activity by Apple supply chain partners to grow in India. While not necessarily directly benefiting Apple production, the investment at least demonstrates how India is becoming a more important ally to manufacturers.
For the iPhone specifically, Apple is keen to get more production in the country, as a means to fend off international issues such as the Trump tariff activity.
Apple reportedly wants nearly every iPhone 18 sold in the United States to be sourced from India by 2026. During the Q2 results, Apple confirmed that half of U.S. iPhone sales in the quarter were India-produced devices.
The iPhone isn’t the only device that is seeing a boost to India-based production. AirPods supplier Jabil is reportedly looking to build a second plant in India, to produce more cases.
