What Does Foxconn Investment In India Means
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Close to the heels of the Union Cabinet approving an HCL-Foxconn semiconductor joint venture (JV), which will set up an outsourced semiconductor assembly and test (OSAT) facility, at an estimated cost of INR 3,706 crore at Jewar in Uttar Pradesh, there is another major development. Foxconn, a primary partner of Apple in manufacturing iPhones and other gadgets, has announced the investment of INR 12,800 crore in India. This was declared in a Taiwan Stock Exchange filing. Foxconn's Singapore based subsidiary will be injecting these funds into the Indian company, Yuzhan Technology (India) Private Limited, a Tamil Nadu unit of Foxconn.
Foxconn is an integral part of Apple's end to end value chain and the investments come close to Apple's announcement in India — where CEO Tim Cook confirmed that the majority of iPhones sold in the US in the June quarter would be sourced from India — while China would continue to cater to most other markets. Currently, around 16-17 percent of Apple's global iPhone production comes from India. This shows India as a promising market for China + 1 strategy. Currently, the majority of iPhones are manufactured in China and Apple is looking to diversify its supply chain. Moreover, the JV would be making display driver chips, key components of mobile phones, especially iPhones, and automobiles. "With an investment of INR 3,700 crore, the project brings large-scale advanced packaging and testing capabilities specifically for display driver ICs—addressing a critical gap in India's display and electronics value chain. This isn't just about building infrastructure—it reflects India's growing maturity in semiconductor manufacturing, with trusted partners, strategic intent, and industrial scale," said Ashok Chandak, President, IESA and SEMI India. Union minister Ashwini Vaishnaw has expressed optimism, stating that India hopes this partnership will eventually lead to Apple processors being made domestically.
A report from the Financial Times revealed that Apple plans to relocate all assembly of iPhones destined for the US market from China to India by the end of 2026. This move is part of Apple's response to escalating trade tensions and tariff pressures under US President Donald Trump's administration. However, India's ambition to become an iPhone manufacturing hub is in the ire of the US President. Speaking at a business event in Doha, Trump mentioned he told Apple CEO Tim Cook to stop producing iPhones in India. "My friend, I treated you very good…but now I hear you're building all over India…I don't want you building in India," the US President told Cook. Nevertheless, Cook has assured the Indian government that their India strategy remains unaffected.
Since the COVID-19 pandemic and geopolitical tensions, many global manufacturers reevaluated their supply chains to mitigate risk. India is believed to have emerged as a key destination for manufacturing due to its market potential, flexible workforce, and increasing income levels. But this isn't enough. In order to meet its electronics ambition, the key challenges that India needs to focus on are infrastructure, a developed component supplier ecosystem, and a massive skilled workforce to cater to this developing ecosystem. Recently, the government announced the Electronics Component Manufacturing Scheme (ECMS), aimed at strengthening India's electronics manufacturing ecosystem.
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