Foxconn, which assembles Apple's iPhones, to invest ₹12,774 crore in Indian subsidiary despite Trump's dissuasion

Taiwanese contract manufacturer Foxconn, which assembles Apple’s iPhones, will infuse $1.5 billion in its Indian subsidiary, it disclosed in a regulatory filing.

Foxconn’s Singapore-based subsidiary will buy 12.77 billion shares worth ₹10 apiece, totalling to about ₹12,774 crore ($1.5 billion) in Yuzhan Technology India, the filing reads. 

Unlike others, Apple does its manufacturing in two to three countries. The iPhone is made only in China and India. There are some operations in Vietnam relating to iMac and iPad, but the scale and growth opportunities of manufacturing in India are second only to China. 

This development comes at a time when uncertainty looms large, fuelled by U.S. President Donald Trump’s all-out tariff impositions on allies and adversaries alike. This has led companies like Foxconn to diversify geographically and have alternative manufacturing bases, a welcoming development for India as it entails big-ticket investments. 

However, Trump, at an event with business leaders in Qatar, spoke of a conversation with Apple CEO Tim Cook. “I said I don’t want you building in India,” Trump recounted. Although Apple later remarked that the plans for India remain unchanged, the iPhones meant for the U.S. will be made in India. Ashwini Vaishnaw, India’s IT Minister, recently revealed Apple exported a massive ₹1.5 lakh crore, or $17.4 billion, worth of iPhones in FY25. 

Foxconn—along with two other Apple vendors, Wistron and Pegatron—have been part of the government’s Production-Linked Incentive (PLI) scheme announced by the government in 2020. Wistron was bought out by Tata Electronics in FY24. Foxconn has a presence in Karnataka, Tamil Nadu, and Telangana, and according to the report, the contract manufacturer will wind down its operations in Sri City in Andhra Pradesh. 

Last week, the Union Cabinet also approved a ₹3,706 crore proposal by HCL Group and Hon Hai Technology Group (Foxconn) to set up a semiconductor Outsourced Semiconductor Assembly and Test (OSAT) facility near the upcoming Jewar airport in Uttar Pradesh.

Marking the sixth semiconductor project approved under the India Semiconductor Mission, and the fifth in chip packaging, what sets this one apart is its focus on wafer-level packaging (WLP)—a more advanced and value-added form of chip assembly that brings India closer to global technology standards.