Apple Inc. is significantly expanding its iPhone production capabilities in India by collaborating with Tata Electronics and Foxconn. This strategic move aims to diversify Apple’s manufacturing operations and reduce its reliance on China, especially amid escalating trade tensions and shifting U.S. tariff policies.
New Manufacturing Facilities
A new Tata Electronics facility in Hosur, Tamil Nadu, has commenced assembling older iPhone models on a single production line. Concurrently, Foxconn is preparing to initiate operations at its $2.6 billion plant in Bengaluru, Karnataka, within days. This facility is slated to produce the upcoming iPhone 16 and 16e models, with an expected output of 300 to 500 units per hour. ([reuters.com](https://www.reuters.com/world/asia-pacific/new-tata-plant-starts-iphone-production-foxconn-close-behind-apple-looks-india-2025-04-29/?utm_source=openai))
Job Creation and Economic Impact
The Foxconn plant is projected to create approximately 50,000 jobs by the end of 2027, contributing significantly to local employment and economic growth. This expansion is part of Apple’s broader strategy to establish India as a major manufacturing hub, thereby reducing its dependence on Chinese production facilities. ([reuters.com](https://www.reuters.com/world/asia-pacific/new-tata-plant-starts-iphone-production-foxconn-close-behind-apple-looks-india-2025-04-29/?utm_source=openai))
Record-Breaking Exports
In March, Apple achieved a milestone by exporting iPhones worth $2 billion from India to the United States, setting a new monthly export record. This achievement underscores the growing importance of India’s role in Apple’s global supply chain. ([reuters.com](https://www.reuters.com/world/asia-pacific/new-tata-plant-starts-iphone-production-foxconn-close-behind-apple-looks-india-2025-04-29/?utm_source=openai))
Strategic Shift Amid Trade Tensions
This manufacturing shift comes in response to increasing pressure from the U.S. government for Apple to relocate more of its production to domestic or alternative international locations. While Apple currently benefits from temporary tariff exemptions on Chinese imports, these waivers are subject to change. To mitigate potential disruptions, Apple plans to move the majority of U.S.-bound iPhone production to India by late 2026. ([ft.com](https://www.ft.com/content/c2be45b8-cfad-4cbb-9a1a-bfd0626be372?utm_source=openai))
Current Production Landscape
Presently, India accounts for approximately 18% of global iPhone production, with China still dominating at over 75%. With the addition of these new facilities, Apple contractors Tata and Foxconn will jointly operate five iPhone assembly plants in India, marking a significant step toward diversifying Apple’s manufacturing base. ([reuters.com](https://www.reuters.com/world/asia-pacific/new-tata-plant-starts-iphone-production-foxconn-close-behind-apple-looks-india-2025-04-29/?utm_source=openai))
Challenges and Quality Control
Despite these advancements, Apple faces challenges in maintaining its stringent quality standards. Reports indicate that at a Tata-run casings factory, only about half of the components produced meet Apple’s quality requirements, highlighting the complexities involved in scaling up production in new locations. ([gadgets360.com](https://www.gadgets360.com/mobiles/news/iphone-production-india-challenges-tata-group-factory-foxconn-china-apple-3780907?utm_source=openai))
Conclusion
Apple’s expansion of iPhone manufacturing in India through partnerships with Tata Electronics and Foxconn represents a strategic effort to diversify its supply chain and reduce reliance on Chinese manufacturing. This move not only addresses geopolitical and trade-related challenges but also contributes to economic growth and job creation in India. As Apple continues to navigate the complexities of global manufacturing, its investments in India are poised to play a crucial role in the company’s future production strategies.
