Apple to Expand Supply Chain in India with $1.5 Billion Foxconn Plant Despite Trump’s Disapproval
In a strategic move to diversify its global supply chain, Apple is set to invest $1.5 billion in a new Foxconn manufacturing facility in India, signaling a significant deepening of its production footprint in the South Asian nation. The announcement comes despite criticism from former U.S. President Donald Trump, who has repeatedly urged American tech giants to bring manufacturing jobs back to the United States.
The new Foxconn plant, expected to be located in the southern state of Tamil Nadu, will boost local employment and enhance Apple's ability to meet growing demand in both domestic and international markets. According to sources close to the deal, the facility will manufacture iPhones and potentially other Apple devices, as the company continues to reduce its reliance on China amid geopolitical tensions and supply chain disruptions.
Trump, known for his "America First" policy, expressed disapproval of the move in a recent statement, arguing that American companies should prioritize domestic production. “We built the greatest economy the world has ever seen by bringing jobs home. Apple should be leading that charge, not outsourcing more to India,” he said.
However, analysts suggest that Apple's decision is economically and strategically motivated. India offers a growing consumer base, supportive government policies like the Production Linked Incentive (PLI) scheme, and a rapidly developing electronics manufacturing ecosystem.
“This investment marks a significant shift in Apple’s global strategy,” said tech industry analyst Priya Mehta. “By investing heavily in India, Apple not only gains manufacturing agility but also aligns itself with a market that could soon become one of its largest.”
The Foxconn facility is expected to be operational by late 2026 and could create up to 25,000 direct jobs, with thousands more in ancillary services.
As Apple navigates the complexities of global trade and political expectations, this move underscores a larger trend in tech manufacturing — a pivot towards diversification and resilience over dependence on any single nation.
FAQ
Q1: Why is Apple investing in a Foxconn plant in India?
A: Apple is expanding its supply chain to India to diversify its manufacturing base, reduce dependence on China, and take advantage of India's growing market and government incentives.
Q2: How much is Apple investing in the new Foxconn facility?
A: Apple is backing a $1.5 billion investment through its key supplier, Foxconn, to build a new manufacturing plant in India.
Q3: Where will the new Foxconn plant be located?
A: The new plant is expected to be located in Tamil Nadu, a southern state of India known for its industrial infrastructure.
Q4: What products will be made at this facility?
A: The plant is likely to manufacture iPhones initially, with potential to include other Apple devices as production scales.
Q5: What is Donald Trump’s stance on this move?
A: Former President Donald Trump has criticized the decision, urging Apple and other U.S. companies to bring manufacturing back to the United States.
Q6: How will this affect Apple’s operations in China?
A: This move is part of Apple’s broader strategy to reduce reliance on China amid geopolitical tensions, but it will not completely replace Chinese operations.
Q7: How many jobs will the plant create in India?
A: The facility is expected to create approximately 25,000 direct jobs, along with additional employment through supporting industries.
Q8: When will the new Foxconn plant be operational?
A: The plant is expected to be operational by late 2026.
Q9: Is this Apple’s first manufacturing move in India?
A: No, Apple has been gradually increasing its manufacturing presence in India over the past few years, with existing assembly lines for select iPhone models already in operation.
Q10: What incentives has India offered Apple and Foxconn?
A: India offers several incentives under its Production Linked Incentive (PLI) scheme for electronics manufacturing, aimed at attracting global tech giants.
Publish on may 23,2025 by :selvi