In a significant move to diversify its supply chain and reduce reliance on China, Apple has begun iPhone production at a new Tata Electronics plant in Hosur, Tamil Nadu, India. Meanwhile, Foxconn, Apple's largest contract manufacturing partner, is gearing up to start production at its new facility near Bengaluru, Karnataka. This expansion underscores India's growing importance in Apple's global manufacturing strategy.
The Tata Electronics plant has commenced operations in recent days, focusing on assembling older iPhone models on a single assembly line. This marks Tata's third iPhone production venture in India, following its acquisition of Wistron's assembly plant in Karnataka and ongoing plans to build a new plant in Hosur. In November 2024, Tata Electronics acquired a 60% stake in Pegatron's iPhone manufacturing plant in Tamil Nadu, with Pegatron retaining a 40% share and providing crucial technical support. The Tamil Nadu site employs 10,000 workers and is projected to produce about five million iPhones annually.
Foxconn's $2.6 billion facility, still under construction, is expected to begin production shortly, focusing on the iPhone 16 and iPhone 16e models. The plant will initially operate one assembly line with a capacity of 300–500 units per hour and is projected to employ 50,000 workers when fully operational by December 2027. Foxconn is reportedly planning to double iPhone production in India in 2025, aiming to produce 25-30 million units annually. To achieve this, the manufacturer has been experimenting with restricted testing operations at its new Bengaluru facility over the past 3-4 months to ensure it can meet Apple's quality standards. Once these tests are complete, Foxconn is expected to move to the "revenue build" phase, during which iPhones assembled in India will be shipped commercially, both for domestic sale and export.
Apple's decision to expand its manufacturing in India is driven by several strategic factors. The primary driver is to reduce dependence on China amid escalating trade tensions and tariffs under US President Donald Trump. By diversifying its manufacturing bases beyond China, Apple aims to mitigate risks associated with geopolitical factors and supply chain disruptions. India's attractiveness as a manufacturing hub is amplified by proactive governmental initiatives and a favorable policy environment. The Indian government is supporting this effort by eliminating import duties on components essential for smartphone production. In March 2025, the government announced the removal of duties on 28 items related to mobile phone production to bolster local manufacturing capabilities and enhance India's competitive edge in exports.
Apple is also seeking to expand its partnerships with local suppliers and contract manufacturers in India, including Foxconn and Tata Electronics. By leveraging existing infrastructure and expertise, Apple has been able to accelerate its manufacturing activities in India. Furthermore, Indian suppliers are increasingly adopting global standards, ensuring Apple's requirements are met efficiently.
India currently accounts for around 18% of global iPhone production, with China contributing over 75%. However, Apple plans to shift the majority of iPhone production for the US market to India by the end of 2026, targeting over 60 million units annually. In March 2025 alone, Apple shipped $2 billion worth of iPhones from India to the US, including $1.3 billion from Foxconn.
The expansion highlights India's growing role in Apple's global manufacturing strategy and positions the country as a key hub for future iPhone production. The move also strengthens Tata's role as a rising Apple supplier, as both Tata and Foxconn now operate a total of five iPhone manufacturing plants in India. Apple's shift underscores its urgency to navigate geopolitical risks while maintaining production scale and cost efficiency.
