Foxconn Doubles Down On India, Infuses $1.5 Bn In Tamil Nadu Unit

Doubling down on its India push, Apple’s key supplier Foxconn has invested $1.48 Bn in its Tamil Nadu-based unit amid US President Donald Trump’s diktat to the iPhone maker.

In an exchange filing yesterday, Foxconn said it bought 9,999 shares in Yuzhan Technology (India) Private Limited, its Tamil Nadu unit, at INR 10 per share, including a premium component, taking the total deal value to $1.48 Bn.

The Taiwanese electronics contract manufacturer infused the capital through its Singapore arm, Foxconn Singapore Pte Ltd.

The development was first reported by Bloomberg.

It is to be noted that Apple assembled $22 Bn worth of iPhones in FY25, marking a 60% year-on-year increase. A majority of India-made iPhones were assembled at Foxconn’s Tamil Nadu plant.

Apple CEO Tim Cook recently announced that the bulk of iPhones sold in the US in the June quarter will be sourced from India.

Tata Electronics, another key Apple supplier, has reportedly also started production of iPhone 16 and 16e models from its Hosur plant in Tamil Nadu. One out of five iPhones sold across the world is made in India, a testament to the country’s manufacturing capabilities.

Foxconn’s India Push, Trump’s Tariff Threats & More

The capital infusion comes about a week after India’s cabinet approved Foxconn’s proposed joint venture with HCL to set up a semiconductor facility in Noida at an estimated cost of $435 Mn.

Foxconn reportedly more than doubled its India revenue to over $20 Bn (around INR 1.7 Lakh Cr) in FY25. This surge is largely attributed to a substantial increase in iPhone production.

Looking ahead, Foxconn plans to significantly expand its iPhone manufacturing in the country, aiming to produce 25-30 Mn iPhones from its India units this year. This represents more than double the number it made last year.

This push is part of Apple’s broader strategy to diversify its supply chain and reduce its reliance on China. With an eye on building an ecosystem of Indian suppliers for components used in its iPhones, MacBooks and Airpods and smartwatches, Apple has forged ties with Motherson Group, Aequs, Bharat Forge, among others.

These developments come against the backdrop of the Trump administration slapping a 27% tariff on Indian goods last month. However, it later put a 90-pause on higher tariffs amid its ongoing trade deal negotiations with New Delhi. 

On the other hand, the US and China have lowered tariffs on one another’s goods – the US has dropped tariff rates on Chinese goods to 30% from 145%, while China has slashed import taxes on US goods to 10% from 125%.

Amid the tariff war blues, Trump reportedly said last week that he asked Apple CEO Cook to scale back manufacturing in India. However, the iPhone maker later clarified that its India investment plans remained unchanged.