Foxconn to Invest $1.49 Billion to Set Up iPhone Manufacturing Facility in India

Apple’s iPhone assembler, Hon Hai, better known as Foxconn, has received regulatory approval from Taiwan’s Ministry of Economic Affairs for two investment projects worth over $2.2 billion in the US and India, Focus Taiwan reported on Tuesday.

Foxconn’s approved plans include an investment of around $1.49 billion in its subsidiary, Foxconn Singapore Pte. Ltd., which will channel the funds into Yuzhan Technology (India) Private Ltd. to set up a new facility for manufacturing smartphone components.

It is also allocating $735 million from its disposal capital to set up a new company in the US called Project ETA (DE) LLC, which will focus on data center module production and server assembly operations.

Foxconn is said to be diversifying its production beyond China, with India positioned as a key destination for manufacturing iPhones and related components. In light of ongoing trade tensions between the United States and China, market analysts view the latest investment in Yuzhan Technology (India) as part of the company’s broader efforts to reduce its reliance on China.

India has emerged as a key hub for iPhone manufacturing, with nearly 97 percent of the devices assembled in the country between March and May this year exported to the United States, according to reports. The value of these exports is estimated at around $3.2 billion.

In May, Foxconn confirmed plans to proceed with a $1.5 billion investment to set up a new component manufacturing facility near Chennai, despite political pressure from former US President Donald Trump to bring production back to the United States.

With production volumes expected to grow, industry experts forecast that India-made iPhones could account for up to 30 percent of global shipments by 2025, rising from approximately 18 percent last year.

As part of its global expansion, Hon Hai has been steadily extending its production footprint to regions including the US, India, Mexico, Vietnam, and Europe. The company operates 223 plants and offices across 24 countries, with 54 locations in the Americas, 12 in Europe, and 12 in India, supporting its push for regionalised manufacturing.

These expansions reflect Foxconn’s broader push to de-risk its supply chain and reduce overdependence on single markets.