Foxconn, Apple's top supplier, is moving forward with a $1.5 billion investment in a new component factory near Chennai, despite mounting political pressure from US President Donald Trump to return production to the United States.
Key Highlights
- Foxconn invests $1.5 billion in Chennai plant to expand iPhone production, creating 14,000 jobs.
- Despite Trump's objections, Apple proceeds with India expansion, aiming for 60% U.S.-bound iPhones.
Two Indian government officials confirmed that the Taiwanese electronics giant is establishing a new plant in Tamil Nadu's Oragadam industrial hub, adjacent to its existing iPhone assembly facility.
The new plant will manufacture the display module, a critical component that sits beneath an iPhone's screen and controls the touch interface, brightness, and color quality. Once operational, it will be one of the most significant investments in India's electronics sector to date.
Foxconn announced the investment in a filing with the London Stock Exchange earlier this week, stating that the funds would go to its Indian subsidiary, Yuzhan Technology India. The Tamil Nadu government had already approved the project in October, with the expectation that it would create approximately 14,000 jobs.
Donald Trump tells Apple CEO to make in the United States, not India
The move comes as Apple's manufacturing footprint in India grows, despite President Trump's public criticism of the company's international expansion. Last week, during a visit to Qatar, Trump claimed that he had urged Apple CEO Tim Cook not to build factories in India unless they directly served the Indian market.
"He is building across India. "I don't want you building in India," Trump said, adding that Apple should boost production in the United States. Despite these remarks, Apple appears to be moving forward with its plans.
India to manufacture iPhones bound for the United States
India will produce 18% of the world's iPhones in 2024 and 32% in 2025, predicts market research firm Counterpoint. According to reports, Apple also intends to start producing all 60 million iPhones sold in the US each year in India by the end of the following year.
In the fiscal year that concluded on March 31, 2025, Apple produced $22 billion worth of iPhones in India, a nearly 60% increase over the previous year.
India has become more significant in Apple's global plans as the company looks to diversify its production. Apple's change has been accelerated by Washington-Beijing tensions as well as this year's US tariffs on Chinese imports.
Most iPhones manufactured in India are currently assembled at Foxconn's facility in Tamil Nadu. Tata Group, which recently acquired Wistron's local operations and oversees Pegatron's plants, is also increasing production in southern India.
