A new manufacturing facility for iPhones has commenced operations in southern India, with another set to begin shipments in May. This move is part of Apple’s strategy to diversify production away from its main manufacturing base in China, which has been adversely affected by tariffs.
Amid escalating trade tensions between the United States and China, Apple is positioning India as a viable alternative for manufacturing. The tariffs imposed by President Donald Trump, some exceeding 100 percent on certain goods, have raised concerns over potential supply chain interruptions and the possibility of increased prices for iPhones.
Although US tariffs have not yet been applied to Chinese-made electronics, indications suggest that additional levies could be enforced in the near future, heightening the urgency for companies like Apple to seek alternatives.
Recently, a new plant operated by Tata Electronics in Hosur, located in Tamil Nadu, began producing older models of the iPhone on its initial assembly line, according to industry sources.
Meanwhile, Foxconn, a Taiwanese multinational, is in the process of constructing a $2.6 billion plant in Bengaluru, Karnataka, which is also slated to begin operations shortly. This facility is expected to feature its first assembly line within days, as confirmed by multiple sources, including a government official.
Reports indicate that the production capacity at this new facility could reach between 300 to 500 iPhone units per hour, with expectations that the upcoming iPhone 16 and 16e models will be manufactured there. Once fully operational, which is projected by December 2027, this plant could provide up to 50,000 jobs.
Requests for comments from Tata, Apple, and Foxconn have gone unanswered at this time.
According to research firm Counterpoint, China currently accounts for over 75 percent of global iPhone production, while India’s contributions are approximately 18 percent. Apple is reportedly making significant efforts to relocate the majority of its iPhone production for the US market to Indian facilities by the end of 2026, as noted in previous reports from Reuters.
In recent weeks, Apple has accelerated its production in India to circumvent the impact of US tariffs. In March alone, shipments of iPhones valued at about $2 billion (approximately Rs. 16,900 crore) were sent to the US—a monthly record for both Tata and Foxconn. Notably, Foxconn was responsible for smartphones worth $1.3 billion (around Rs. 10,987 crore).
Tata, a newer supplier for Apple, has rapidly established itself as a key player among Indian contractors. With these new facilities, Foxconn and Tata will collectively operate five iPhone manufacturing plants in India.
© Thomson Reuters 2025
