Foxconn to Invest USD 2.2 Bn in India and US, Shifts Production from China

New Delhi, Jun 25 (KNN) Taiwan’s Hon Hai Precision Industry Co. — popularly known as Foxconn and a key assembler of Apple’s iPhones — has received regulatory approval from Taiwan's Ministry of Economic Affairs to invest over USD 2.2 billion in two strategic initiatives in India and the United States.

In India, Foxconn will channel USD 1.49 billion through its subsidiary in Singapore — Foxconn Singapore Pte Ltd — into Yuzhan Technology (India) Pvt Ltd.

This capital injection is earmarked for establishing new manufacturing capacity to produce iPhones and key components, reinforcing India’s role as a critical hub in Apple’s supply chain.

The move marks a significant expansion from earlier investments — over USD 1.5 billion funnelled into India since May to build new component plants, including a display-module assembly facility near Chennai capable of supporting over 14,000 jobs.

This shift isn’t just about diversification — it's also a geopolitical hedge. With ongoing US–China trade tensions and former US President Trump criticizing Apple’s expansion in India, Foxconn is strategically relocating a substantial part of its production footprint away from China.

In fact, around 97 per cent of India‑made iPhones are now destined for the US market — a ratio projected to grow as India’s share of global iPhone output climbs from around 15–18 per cent in 2024 to potentially above 30 per cent in 2025–2026 .

In the United States, Foxconn also received approval to invest USD 735 million (“Project ETA (DE) LLC”) to build data‑center modules and assemble servers on US soil .

These twin investments reflect Foxconn’s broader “China‑plus‑one” strategy, operationalising a global footprint that now includes 223 plants and offices across 24 countries, with 54 locations in the Americas and 12 each in Europe and India.

(KNN Bureau)