Foxconn to expand India focus with $1.5bn investment
Foxconn to expand India focus with $1.5bn investment
20 May, 2025 : Key iPhone maker Foxconn is making a $1.5 billion investment to expand its focus on India as Apple looks to mitigate geopolitical and tariff risks by shifting production away from China. The Taiwanese tech giant said its Singapore-based subsidiary had picked up 12.7 billion shares in its India unit, resulting in an injection of about $1.5 billion. The India unit, known as Yuzhan Technology India, makes components for smartphones in the southern state of Tamil Nadu, according to local media reports. No other details regarding the investment were offered in a filing with the Taiwan stock exchange on Monday. India has sought to position itself as an alternative manufacturing base to China. New Delhis attempts to offer billions in subsidies to incentivise domestic manufacturing have resulted in a boom in local electronics production. Foxconns move comes just weeks after Apple CEO Tim Cook said he expected a majority of iPhones sold in the United State would have "India as their country of origin". The slow shift from China to India, experts say, will allow the consumer electronics giant to offset the tariff and geopolitical risk that come with US President Donald Trumps aggressive trade push. Apples decision to double down on India also drew the ire of Trump who last week said he told Cook: "Were not interested in you building in India... we want you to build here". Foxconn has also looked to more broadly expand its manufacturing operations in India. Last week, the Indian government granted approval to the Taiwanese firm to build a semiconductor plant in northern India as part of a joint venture with the HCL Group. The project, a government press release said, would attract an investment of 37 billion rupees (about $432 million) from the HCL-Foxconn joint venture. When finished, the plant will churn out display driver chips -- key components for smartphones, laptops and automobiles among other devices. The facility, the press release added, is designed for "20,000 wafers" or slices of semiconductor material per month, with a design output capacity of "36 million units per month". New Delhi has offered generous financial support for companies willing to make chips in the country, as it looks to secure its own supply and quell national security concerns.