Apple Expands iPhone Production in India with New Tata Electronics and Foxconn Plants

A new Tata Electronics plant in Hosur in Tamil Nadu in southern India has started producing iPhones, and a Foxconn facility in Bengaluru is expected to begin shipments in May, as Apple seeks to expand manufacturing beyond China, Reuters reported on 29 April 2025.

Apple is positioning India as an alternative manufacturing hub to China amid escalating trade tensions between Washington and Beijing, with US President Donald Trump’s tariffs exceeding 100% on Chinese goods threatening supply-chain disruptions and raising concerns about potential iPhone price increases.

According to Reuters, the new Tata Electronics plant in Hosur began operations in “recent days”, producing earlier iPhone models on a single assembly line.

Meanwhile, Foxconn’s $2.6 bn plant under construction on the outskirts of Bengaluru is set to commence operations within days, starting with one assembly line. The facility will manufacture iPhone 16 and iPhone 16e models, with a capacity of 300 – 500 units per hour, per the report.

When fully operational, the Foxconn plant is expected to employ 50,000 people. Construction of the unit is slated for completion by December 2027.

US-China Tariff War

The Trump administration has so far exempted China-made gadgets from tariffs, but Washington has indicated that additional taxes may be imposed in the coming weeks.

According to Counterpoint Research, China accounts for over 75% of global iPhone production, while India contributes approximately 18%. Reuters reports that Apple is taking urgent steps to shift the production of the majority of iPhones sold in the United States to Indian plants by the end of 2026.

Apple has ramped up production in India in recent weeks to circumvent tariffs, shipping approximately 600 t of iPhones valued at $2 bn to the United States in March, setting a monthly record for both Tata Electronics and Foxconn. Foxconn alone accounted for iPhones worth $1.3 bn.

Tata, a relatively new Apple supplier, has quickly emerged as a key Indian contractor. With the new facilities, Foxconn and Tata will collectively operate five iPhone-manufacturing plants in India.

iPhone Production in India

Apple reportedly plans to shift the production of all iPhones sold in the United States from China to India as early as next year, driven by escalating trade tensions and tariffs imposed by President Trump.

According to a Financial Times report, Apple aims to produce over 60 mn iPhones annually in India for the US market by the end of 2026, effectively doubling its current output in the country.

This decision marks a significant shift for Apple, which has long depended on China, particularly manufacturing partners like Foxconn to assemble the majority of its iPhones. Over the past two decades, the company has heavily invested in establishing a robust production ecosystem there.