As Apple attempts to shift production away from China in order to reduce geopolitical and tariff concerns, Foxconn, the company that makes iPhones, is investing $1.5 billion to increase its focus on India.
The Taiwanese computer behemoth announced that its Singapore-based company has acquired 12.7 billion shares in its India division, bringing the total amount invested to almost $1.5 billion. According to local media sources, the India unit, called Yuzhan Technology India, smartphone manufacturing components in the southern state of Tamil Nadu. In a filing with the Taiwan stock exchange on Monday, no other information about the investment was provided. India has made an effort to establish itself as a manufacturing hub that is different from China.
Local electronics production has increased as a result of New Delhi's attempts to provide billions in subsidies to encourage indigenous manufacturing. The action taken by Foxconn follows just a few weeks after Tim Cook, the CEO of Apple, stated that he anticipated that "India as their nation of origin" would account for the bulk of iPhones sold in the US. Experts predict that by gradually moving from China to India, the massive consumer electronics company will be able to counteract the geopolitical risk and tariffs associated with US President Donald Trump's tough trade policies.
Apple's decision to double down on India also drew the ire of Trump who last week said he told Cook: "We're 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.
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