Apple has significantly advanced its global manufacturing strategy by inaugurating two new iPhone production facilities in India. This move is part of the company’s ongoing efforts to diversify its supply chain and reduce dependence on Chinese manufacturing.
Tata’s New Manufacturing Facility
The Tata Group, a prominent Indian conglomerate, has commenced operations at its new iPhone manufacturing plant in Hosur, Tamil Nadu. This facility, which began production in late April 2025, focuses on assembling older iPhone models. The establishment of this plant follows Tata’s acquisition of Pegatron’s facility in Hosur in 2024, which had previously been closed due to a fire incident. With this new facility, Tata now operates three major iPhone manufacturing centers in India, marking a significant expansion from its initial role as an accessories supplier.
Foxconn’s Expansion in Bengaluru
Simultaneously, Foxconn, Apple’s largest iPhone manufacturer, is on the verge of launching operations at its new $2.6 billion plant in Bengaluru, Karnataka. The facility is set to begin initial operations with a single assembly line within days and is expected to be fully operational by December 2027. Once at full capacity, the plant aims to produce the upcoming iPhone 16 and 16e models and create approximately 50,000 jobs in the region.
Strategic Shift from China
These developments are part of Apple’s broader strategy to diversify its manufacturing base and reduce reliance on China. The company has been encouraging its suppliers to expand operations in other countries, particularly India, to mitigate risks associated with geopolitical tensions and trade disputes. This strategic shift is further underscored by the recent imposition of higher tariffs on Chinese imports by the U.S. government, prompting Apple to accelerate its diversification efforts.
India’s Growing Role in iPhone Production
India’s role in Apple’s supply chain has been steadily increasing. As of April 2024, Apple assembled approximately 14% of its iPhones in India, a significant increase from previous years. The Indian government has been actively promoting local manufacturing through initiatives like the Make in India campaign, offering financial incentives to attract foreign companies. This has led to the creation of numerous jobs and has positioned India as a key player in global smartphone production.
Future Outlook
Looking ahead, Apple plans to further expand its manufacturing footprint in India. The company aims to shift the majority of iPhone production for the U.S. market from China to India by the end of 2026. This move is expected to not only reduce production costs but also strengthen Apple’s position in the rapidly growing Indian smartphone market.
In conclusion, the opening of these new factories by Tata and Foxconn marks a significant milestone in Apple’s efforts to diversify its supply chain and reduce dependence on Chinese manufacturing. By expanding production in India, Apple is not only mitigating geopolitical risks but also tapping into a burgeoning market with immense growth potential.
