Apple is pushing ahead with major manufacturing plans in India, rejecting President Donald Trump’s call to shift production back to the U.S.
The company is ramping up its focus on a “China plus one” strategy to reduce its reliance on factories in China. This is because political tensions between the country and the United States continue to grow, and trade restrictions, including tariffs, could affect Apple’s ability to make and ship its products freely.
Earlier, President Donald Trump called on big American companies like Apple to bring their manufacturing back to the United States. He urged it would bring back jobs, help American workers, and reduce the country’s dependence on foreign supply chains.
His administration levied tariffs on products manufactured outside the U.S. to make imports more expensive and coerce companies into moving production to the U.S. However, Apple stood its ground and doubled down on a diversified global supply chain strategy.
The Indian government, meanwhile, rolled out a $2.7 billion production-linked incentive scheme to attract global tech manufacturers.
Those incentives have helped Apple and its primary suppliers, such as Foxconn and Pegatron, build new factories, create jobs, and train workers. The work is already paying off, as India is emerging as a serious competitor to China in its efforts to establish itself as a global manufacturing hub for electronics.
Apple’s contractor Foxconn ramps up India investments with new mega factories
Apple’s main contractor, Foxconn, is also building a new $1.5 billion factory near Chennai in southern Tamil Nadu, India, to produce iPhone display modules. These are Apple’s most important components in its best-selling product line.
Foxconn already operates several factories in the region. Thus, expanding into an area with trained workers, strong logistics, and government support is a logical next step.
Foxconn has received approval from the Indian government to build a $450 million semiconductor assembly factory in Jewar. The company has linked with Indian tech company HCL Technologies to help assemble chips for smartphones and other electronic devices.
Officials expect the new plant in Jewar to create around 2,000 jobs, including skilled and semi-skilled workers for technical and factory positions.
Foxconn already employs about 80,000 people in India. With these new investments, that number will likely grow much higher in the coming years.
Apple also runs smaller operations in countries like Vietnam and Malaysia, but plans to manufacture all iPhones meant for the U.S. market in India. This is a way to protect itself from trade troubles that could come from future disagreements between China and the U.S.
India’s trade deals with major markets like the European Union and Asia make it increasingly appealing to global companies. They’re drawn by easier market access, strong government support, and the opportunity to reduce reliance on a single country.
Apple’s strong and clear decision to move much of its iPhone production to India could inspire other large multinational companies to rethink their supply chains. They may consider similar moves because most of these organizations look up to Apple’s lead in innovation and manufacturing.
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