Foxconn pours $1.5B into India, accelerating iPhone shift from China.

In a significant move that underscores India's rising prominence in the global electronics manufacturing landscape, Taiwanese technology giant Hon Hai Precision Industry Co., more commonly known as Foxconn, is injecting approximately $1.5 billion into its Indian operations.[1][2][3] This substantial investment is widely seen as a direct effort to bolster iPhone production within the country, aligning with Apple's strategic diversification of its supply chain away from a heavy reliance on China. The capital infusion, made through a Singapore-based subsidiary, signals a deepening commitment to India and is expected to accelerate the expansion of manufacturing capacity, particularly in the southern states.[1][3][4] This development is a clear manifestation of the "China Plus One" strategy being adopted by major multinational corporations, aimed at mitigating geopolitical and tariff-related risks.[1][4][5]

The centerpiece of Foxconn's expansion is a sprawling 300-acre campus currently under construction in Devanahalli, near Bengaluru's Kempegowda International Airport in the state of Karnataka.[6][7][8] This facility, internally dubbed "Project Elephant," represents a total investment of roughly $2.56 billion and is poised to become one of Foxconn's largest manufacturing sites globally, second only to its operations in China.[9][10] The project is being executed in phases, with an initial investment of around Rs 3,000 crore (approximately $360 million) for the first phase, and a similar amount slated for the second.[6][9][7] The plant is expected to commence commercial shipments of iPhones as early as June 2025, with a target production of 100,000 iPhones by December of the same year.[6][11][7] Ultimately, the facility is projected to create tens of thousands of jobs, significantly impacting the local economy.[10]

This major investment is heavily influenced by the Indian government's supportive policies, particularly the Production Linked Incentive (PLI) scheme.[12][13] The PLI program is designed to attract large-scale electronics manufacturing by offering financial incentives on the incremental sales of goods produced in India.[12][13] The scheme aims to create a level playing field for domestic manufacturers and position India as a global hub for Electronics System Design and Manufacturing (ESDM).[12][14] For its Karnataka project, Foxconn is set to receive substantial incentives from the state government, reinforcing the collaborative effort between industry and government to foster a robust manufacturing ecosystem.[8][15][16] The success of the PLI scheme is evident in the rapid growth of electronics exports from India, which have surged as companies like Foxconn expand their operations.[17]

The implications of Foxconn's expanding footprint in India are multifaceted, extending beyond mere manufacturing. It represents a strategic victory for India's "Make in India" initiative and strengthens its position in the global supply chain. For Apple, it is a critical step in de-risking its operations, a necessity highlighted by ongoing trade tensions and other geopolitical uncertainties.[11][1] The move is expected to have a significant ripple effect on the local economy in Karnataka, driving real estate development and creating a large number of jobs, with a notable emphasis on employing women.[9][10] To support the massive workforce, Foxconn is also constructing large-scale dormitories, capable of housing up to 30,000 workers, with a preference for female employees who are expected to constitute a majority of the workforce.[6][9][7] Beyond iPhone assembly, Foxconn's growing presence is also anticipated to spur the development of a local component ecosystem, potentially including semiconductor and display manufacturing in the long term, further integrating India into the high-tech value chain.[2][18]

In conclusion, Foxconn's substantial new investment in India is more than just the establishment of a new factory; it is a landmark development that signals a strategic realignment of global technology manufacturing. Driven by a confluence of corporate strategy to diversify risk and supportive government policies, this move is set to significantly boost India's manufacturing capabilities, create widespread employment, and deepen the country's integration into the global electronics and AI industries. As production ramps up at the Devanahalli plant and other facilities, India is solidifying its role as a viable and crucial alternative to China for high-tech manufacturing, a shift that will have lasting consequences for the international technology landscape. The success of this venture could pave the way for further investments in advanced manufacturing, including the critical semiconductor sector, heralding a new era for India as a technology powerhouse.