Apple is accelerating its efforts to localize iPhone production in India by establishing two major assembly plants — one by Tata Electronics and the other by Foxconn. This expansion signals a strategic shift in Apple’s global manufacturing strategy, aimed at diversifying its supply chain amid escalating geopolitical tensions and the ongoing US-China trade war.

Key Points

Apple partners Tata Electronics and Foxconn to set up new iPhone assembly plants in India.

Tata’s plant in Hosur has started producing older iPhone models.

Foxconn’s $2.6 billion facility in Bengaluru will manufacture the iPhone 16 series.

Apple aims to reduce dependency on China amid growing tariffs.

The Foxconn plant is expected to create 50,000 jobs by 2027.

Apple’s Strategic Shift to India

As the trade war between the United States and China escalates, Apple is actively moving parts of its manufacturing operations outside China. India has emerged as a key player in this transition. Apple already operates three iPhone assembly facilities in the country — two in Tamil Nadu and one in Karnataka. The two new upcoming plants further cement India’s growing role in Apple’s global supply chain.

Tata Electronics Begins Production in Hosur

According to Reuters, Tata Electronics has commenced operations at a new facility in Hosur, Tamil Nadu. The plant is currently assembling older-generation iPhones and represents Tata’s growing role in Apple’s manufacturing ecosystem. This marks a significant milestone, as Tata becomes the first Indian company to take on iPhone assembly independently.

Foxconn’s Mega Facility in Bengaluru

Meanwhile, Apple’s largest supplier, Foxconn, is nearing completion of a $2.6 billion plant in Bengaluru, Karnataka. The facility is expected to begin production in the coming days and will focus on assembling the iPhone 16 and iPhone 16e. With an estimated output capacity of 300 to 500 iPhones per hour, the plant could become one of Apple’s largest in India. Once fully operational, it is projected to employ around 50,000 people by December 2027.

Production Goals and Challenges Ahead

Apple’s goal, as highlighted by industry analyst Mark Gurman, is to shift a significant portion of iPhone production for the US market to India. This would help the company mitigate the impact of tariffs and reduce logistical complexities. However, manufacturing completely new iPhone models outside China — especially in their first production runs — remains a challenge. Future models like the iPhone 18 and the rumoured foldable iPhone may prove difficult to assemble in India initially due to their complex designs and manufacturing requirements.

Impact on Employment and the Indian Economy

The move is not just strategic from a global standpoint but also significant for India’s economy. With increased production, job creation, and technology transfer, Apple’s expanded presence supports the Indian government’s ‘Make in India’ initiative. The 50,000 jobs expected from Foxconn’s plant alone will contribute significantly to the local economy, fostering growth in ancillary industries as well.

Conclusion

Apple’s continued expansion of iPhone manufacturing in India marks a pivotal evolution in its global operations. By investing heavily through partners Tata and Foxconn, Apple is not only insulating itself from geopolitical risk but also contributing meaningfully to India’s manufacturing landscape. While challenges remain, especially around assembling future iPhones, India’s role as a global manufacturing hub is poised to grow stronger in the coming years.