Apple Ramps Up iPhone Production in India Amid Global Supply Chain Shift

For years, Apple relied heavily on China for the manufacturing of its iPhones. However, rising U.S.-China tensions, geopolitical uncertainties, and supply chain disruptions during the COVID-19 pandemic prompted Apple to diversify its manufacturing locations.
 

What's Happening Now
Apple is significantly expanding its iPhone production in India, making it a critical hub in its global supply chain. Two major developments support this shift:
 

Tata Electronics' New Plant in Hosur, Tamil Nadu

Tata has begun assembling older iPhone models in its newly operational facility.

This marks a milestone, as it is one of the first Indian conglomerates to assemble iPhones, signaling a move toward more local production capabilities beyond foreign contractors.

Foxconn's $2.6 Billion Factory in Bengaluru, Karnataka

Foxconn, Apple’s largest manufacturing partner, is nearing completion of its major plant in Devanahalli (near Bengaluru airport).

This facility is expected to start producing the iPhone 16 and 16e models as early as May 2025.

The plant will generate approximately 50,000 jobs, boosting local employment and technological skill development.
 

Why This Matters

Diversification Strategy: Apple is reducing its dependence on China, aiming for India to produce 25% of all iPhones by 2026.

Economic Boost: India's export of iPhones has surged—$2 billion worth were shipped to the U.S. in March 2025 alone, with Foxconn accounting for over half that.

Policy Support: The Indian government has actively encouraged electronics manufacturing through its Production-Linked Incentive (PLI) schemes, offering tax benefits and support to global firms like Apple.

Challenges Ahead

India still lacks the deep supply chain and infrastructure that China has built over decades.

Quality control, logistics, and scalability will be key tests for India-based production.
 

What This Signals
This move not only strengthens Apple's resilience against global uncertainties but also positions India as a rising force in electronics manufacturing. It aligns with India’s vision to become a global hub for technology and production, often referred to as “China Plus One” in geopolitical strategy circles.

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