Foxconn Commits $2.2 Billion to India and U.S. Expansion
Foxconn, the Taiwanese electronics giant and Apple’s primary iPhone assembler, has received regulatory approval for a massive $2.2 billion global investment plan, further deepening its footprint in India and the United States. The move is a part of Foxconn’s ongoing effort to diversify manufacturing outside China amid rising geopolitical and economic pressures.
Major Boost for India’s iPhone Production
The lion’s share of the investment, $1.49 billion, is earmarked for Yuzhan Technology (India) via Foxconn’s Singapore-based entity. This substantial infusion will support the expansion of iPhone and iPhone component manufacturing in India, particularly in Tamil Nadu. Foxconn already operates major facilities in Sriperumbudur and is planning additional infrastructure in Chennai and Oragadam.
With India now accounting for nearly 18% of global iPhone production—a figure expected to rise to 30% by 2025—the company’s investment signals long-term commitment to India as a manufacturing base. Over 97% of the iPhones produced in India are exported to the U.S., with exports totaling $3.2 billion in just three months between March and May 2025.
U.S. Expansion into High-Tech Infrastructure
Alongside its India push, Foxconn plans to invest $735 million in the U.S. under a new unit called Project ETA (DE) LLC. This facility will focus on data center modules and server manufacturing, tapping into the growing demand for data infrastructure in North America. The company is increasingly turning to the U.S. as a complementary base for its high-tech production lines, especially in AI and cloud computing hardware.
Global Shift in Strategy
Foxconn’s latest moves reflect a strategic shift away from China-centric manufacturing. With existing facilities in Vietnam, Mexico, and the Czech Republic, and now with growing presence in India and the U.S., the company is reinforcing its “China+1” diversification strategy. The twin investments in iPhone production and data center technology represent a future-forward portfolio realignment geared toward geopolitical risk mitigation and proximity to major consumer markets.
India’s Role in Apple’s Supply Chain
India is increasingly becoming indispensable to Apple’s global ambitions. From display module and casing production to full-scale iPhone assembly, India now offers a complete supply chain footprint. Foxconn’s investment dovetails with India’s PLI (Production Linked Incentive) scheme, which offers attractive subsidies and policy support for high-value manufacturing.
