Tata & Foxconn: The Made-in-India iPhone race that's reshaping Apple's global supply chain
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Geopolitics and Trump
One in five iPhones sold globally now made in India
India's moment is now
It is no longer a question of if India will become a global manufacturing powerhouse for the iPhone. It is now a matter of how fast.As Apple diversifies its supply chain away from China, two industrial giants, Tata Electronics and Foxconn , have emerged as the prime movers in India's iPhone market. Their race to dominate Apple's India operations is not just about capturing contracts; it is about reshaping the global map of electronics manufacturing.And they are doing it at a breakneck pace.In May 2025, Apple's vendors in India collectively produced iPhones worth over ₹15,000 crore, according to The Economic Times. Although this was slightly lower than the March high of ₹19,630 crore, driven by tariff deadline concerns in the United States, it still dwarfs the ₹10,000 to ₹11,000 crore monthly average seen in 2024.By the end of May, India had already matched the value of iPhones it consumed domestically in all of 2024, which stood at ₹84,000 crore, entirely through domestic production.This rapid growth has been fuelled in large part by India's Production Linked Incentive (PLI) scheme. Between FY23 and FY25, Tata Electronics received ₹2,068 crore in incentives, while Foxconn received ₹2,807 crore, according to ET. This reflects the government's intent to support long-term players.With support from the Modi government, which recently allocated an additional ₹22,919 crore ($2.7 billion) in subsidies for electronics component manufacturing, Apple is unlikely to scale back its India focus.Foxconn, Apple's long-time manufacturing partner, continues to hold the largest share of iPhone production in India. It accounted for an estimated 65% of the country's iPhone output in 2024, with revenues of ₹90,000 crore, according to ET. But the Taiwanese company is not standing still.On May 20, Foxconn announced a fresh $1.5 billion investment in its Indian subsidiary through Singapore-based Yuzhan Technology India , reinforcing its commitment to scaling operations in Tamil Nadu.Just weeks earlier, on April 29, reports emerged that its new $2.6 billion plant in Bengaluru had begun test production, rolling out iPhone 16 and 16e units at up to 500 units per hour. Once fully operational by the end of 2027, the site is expected to employ 50,000 workers.Foxconn's aggressive investments make it clear that the company aims to anchor Apple's non-China manufacturing future and fend off potential challengers.While Foxconn's strategy centres on scale and speed, Tata Electronics is playing the long game, and it is beginning to pay off.After acquiring Wistron's Karnataka facility in 2023, Tata has steadily expanded its footprint. By 2025, the company accounted for 35% of India's iPhone output, up from about 30% in 2024, with reported revenues of ₹48,000 crore, according to The Economic Times.Tata took another major step in January 2025 by acquiring a 60% stake in Pegatron's India unit near Chennai. This gave it a significant boost. The company now operates two iPhone facilities in Tamil Nadu and one in Karnataka. By April, it had also started manufacturing older iPhone models at a new plant in Hosur.The group is also expanding into after-sales services. As of June 5, Tata has taken over Apple device repairs from Wistron's ICT Services unit in India. This move suggests a broader strategic thrust.'This could open doors for Apple to sell refurbished iPhones directly in India, a model that has worked well in the US,' said Prabhu Ram, Vice President at CyberMedia Research, as reported by Reuters.With 11 million iPhones sold in India last year, and Apple's market share rising from just 1% in 2020 to 7% in 2024, the aftermarket opportunity is growing rapidly.Despite Apple's growing shift to India, China remains at the centre of its supply chain. It hosts over 200 suppliers and accounts for more than 75% of global iPhone production.The sheer scale of China's ecosystem makes a complete transition difficult. Apple CEO Tim Cook has often praised China's unmatched expertise in high-precision electronics manufacturing.In 2022, Bloomberg Intelligence estimated it would take eight years to move just 10% of Apple's production capacity out of China.None of this is unfolding in isolation. The US-China trade war continues to cast a long shadow over Apple's production decisions. Now, US President Donald Trump is back in the headlines.'I don't want you building in India,' Trump reportedly told Apple CEO Tim Cook on May 23, 2025. The warning came amid speculation that Trump could re-impose tariffs on India-made iPhones if Apple does not bring manufacturing back to the United States.Cook, however, appears unfazed. In May, he told investors that the bulk of iPhones sold in the US this quarter would be made in India. The economics are hard to ignore.A GTRI report published on May 24 estimated that even with a 25% tariff, Indian-made iPhones would remain cheaper than those manufactured in the US. Building in India costs Apple around $30 per unit. The same device assembled in the US would cost nearly $390.'If Apple really produced an iPhone in a US factory, the price would rise by at least 15 to 20 percent, or $150 to $200,' said Neil Shah, Vice President at Counterpoint Research, as quoted by The Economic Times.According to a Bloomberg report, Apple assembled $22 billion worth of iPhones in India during the 12 months ending March, representing a nearly 60% increase year-on-year. This output equals 20%, or one in five, of all iPhones being made in India.Of this $22 billion output, $17.4 billion worth of iPhones were exported, as confirmed by India's technology minister on April 8. This manufacturing surge was partly triggered by COVID-19-related disruptions in China and further boosted by government incentives and shifting geopolitical equations.China currently accounts for over 75% of Apple's global iPhone production. But India is gaining ground, contributing about 18%, according to Reuters. Apple aims to raise that share quickly, with plans to shift most US-destined iPhone production to India by the end of 2026.According to Counterpoint Research, India could account for 20% of global smartphone output in 2025, driven by exports from Apple and Samsung.Foxconn and Tata are not just building factories. They are laying the foundation for a new global electronics powerhouse. India, once seen as a backup option, is fast becoming a core pillar in Apple's supply chain and possibly the future face of iPhone production.One thing is clear. In this high-stakes race between two industrial titans, the real winner might just be India.
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