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iPhone maker Foxconn to invest $2.2 bn in India, US as it shifts from China
The department has also cleared a $1.49 billion investment proposal aimed at increasing capital in Foxconn Singapore Pte Ltd, a subsidiary of the company
New Delhi
Apple's iPhone assembler Hon Hai, also known as Foxconn, has secured regulatory approval for two of its investment plans worth more than $2.2 billion, in India and the US, news agency Focus Taiwan reported on Tuesday (local time).
The Department of Investment Review under the Ministry of Economic Affairs (MOEA) approved the plan for the Taiwan-based manufacturing giant.
The department has also cleared a $1.49 billion investment proposal aimed at increasing capital in Foxconn Singapore Pte Ltd, a subsidiary of the company. This Singapore-based unit will, in turn, invest the funds into Yuzhan Technology (India) Pvt Ltd, another entity under Hon Hai's umbrella operating in India.
The announcement comes at a time amid trade tensions between the US and China, following which, Hon Hai has now decided to diversify its production out of China, with India being seen as an ideal destination to produce iPhones and their components.
Hon Hai will be setting up a new company in the US, after receiving a nod from the MOEA to allocate $375 million from its disposal capital. The company in the US will be in charge of the data center module protection, along with server assembly.
Foxconn, Apple shift to India
According to a Reuters report, Foxconn ships 97 per cent of iPhones from India for its US market. A move which has been criticised by the US President Donald Trump, who told Apple's Chief Executive Officer (CEO) Tim Cook, 'Tim, you're my friend... but now I hear you're building all over India. I don't want you building in India. You can build in India if you want to take care of India, because India is one of the highest-tariff nations in the world.'
Shipments between March and May 2025 were valued at $3.2 billion, with an average of 97 per cent being sent to the US, marking a sharp jump from the earlier 50 per cent monthly average recorded through 2024, Reuters reported.
In May, Foxconn also announced plans to move ahead with investing $1.5 billion in a new component factory near Chennai, despite political pressure from Trump to shift production back to the United States.
Hon Hai expands global footprint
As Hon Hai continues to expand its global footprint, it is now extending its reach in production to countries and regions such as the US, India, Mexico, Vietnam, and Europe. Hon Hai, worldwide, has 223 plants and offices in a total of 24 countries. While it has 54 plants and offices in the US, 12 are in Europe and India each.
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