Apple’s Contract Manufacturer Foxconn Continues Investing In India Assembly Lines Despite Trump’s Remarks

By Shikhar Mehrotra • Updated On May 22, 2025

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TL; DR

Foxconn, one of Apple’s largest contract manufacturers in India, has decided to invest a whopping $1.5 billion (around Rs. 12,800 crores) in the local assembly units.
Despite Trump’s remarks about investing in the Indian manufacturing ecosystem, Foxconn remains sure about assembling iPhones in India as the country offers a cost-effective alternative with fewer logistical challenges

A couple of days ago, the president of the United States, Donald Trump, said in a media statement that he urged Apple’s CEO, Tim Cook, to stop building in India and focus on local manufacturing of iPhones. However, Apple expressed no plans to exit the country. Now, there are reports of the company’s contract manufacturer infusing over a billion dollars into its assembly lines in India.

Also Read: Trump Demands U.S. Manufacturing Over Indian Expansion: Is India’s iPhone Boom Under Threat?

Foxconn Is Investing $1.5 Billion In the Indian Manufacturing Ecosystem

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According to a new Reuters report, Foxconn, one of Apple’s largest contract manufacturers in India, has decided to invest a whopping $1.5 billion (around Rs. 12,800 crores) in the local assembly units. The investment comes as Foxconn’s Singapore-based subsidiary buys 12.77 billion shares in its Tamil Nadu-based unit, Yuzhan Technology, at Rs. 10 per share.

Despite Trump’s remarks about investing in the Indian manufacturing ecosystem, Foxconn remains sure about assembling iPhones in India as the country offers a cost-effective alternative with fewer logistical challenges and a growing supply chain that helps Apple pump iPhone units in the global market. Ultimately, increasing production in India will help the company decrease its reliance on China.

Also Read: Tata Electronics Now Operates 3 iPhone Manufacturing Plants, Acquires Majority Stake In Pegatron India

Foxconn’s investment will help increase iPhone production in India, which, in turn, will aid the rising domestic demand and the number of units exported from the country. Even though Apple has plans to invest $500 billion in the United States over the next four years, it can’t localize the entire supply chain in a short period, which is where India’s role as one of the company’s key manufacturing hubs comes in.

The $1.5 billion share buyout is not Foxconn’s only investment in India this year. Earlier this month, the company committed to a $433 million (around Rs. 3,700 crores) joint venture with HCL Group (in Uttar Pradesh) to establish a semiconductor assembly and test facility. Besides this, the company is also building a $2.6 billion (around Rs. 22,000 crores) iPhone facility in Bengaluru, Karnataka.

Also Read: Another iPhone Parts Maker Considers India Expansion

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Shikhar Mehrotra

Shikhar Mehrotra is a seasoned technology writer and reviewer with over five years of experience covering consumer tech across India and global markets. At Smartprix, he has authored more than 1,700 articles, including news stories, features, comparisons, and product reviews spanning automobiles, smartphones, chipsets, wearables, laptops, home appliances, and operating systems. Shikhar has reviewed flagship devices such as the iPhone 16, Galaxy S25+, and Sennheiser HD 505 Open-Ear headphones. He also contributes regularly to Smartprix’s growing automotive section.

With a deep understanding of both iOS and Android ecosystems, Shikhar specializes in daily tech news, how-to explainers, product comparisons, and in-depth reviews. His DSLR photography in product reviews is recognized as among the best on the team.

Before joining Smartprix, Shikhar wrote for leading publications including Forbes Advisor India, Republic World, and ScreenRant. He holds a Bachelor of Arts in Journalism and Mass Communication from Amity University, Lucknow.

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