Apple defies Trump, doubles down on India with $1.5 billion Foxconn expansion

In a bold move that underscores shifting geopolitical and manufacturing dynamics, Apple’s key supplier Foxconn has confirmed a $1.5 billion investment into a new plant in southern India — days after former US President Donald Trump publicly pressured the tech giant to abandon its India plans in favor of American soil.

The Taiwanese manufacturing titan disclosed the investment through a filing with the London Stock Exchange earlier this week, earmarking the funds for its Indian subsidiary, Yuzhan Technologies (India) Pvt. Ltd. The upcoming display module facility will be located in Tamil Nadu — a state that has quickly become central to Apple’s India ambitions.

The timing couldn’t be more symbolic. Trump, during a high-profile business meeting with Qatari leaders in Washington last week, claimed he personally asked Apple CEO Tim Cook to halt expansion in India.

“I told Tim — you’re building all over India, and I’m not happy about it,” Trump said. “We’re not interested in more plants there. India can take care of themselves.”

But Apple isn’t flinching.

While the Cupertino giant has not issued an official response, sources within India’s Ministry of Electronics and Information Technology say the company has reassured the Indian government of its long-term commitment. “Supply chains don’t turn on a dime. Apple’s India pivot is years in the making,” said a senior official. “One outburst isn’t going to reverse that trajectory.”

India’s rise in Apple’s global playbook

Apple currently manufactures about 15% of its iPhones in India — a figure expected to hit 25% in the coming years. Tamil Nadu, home to sprawling Foxconn facilities, has emerged as a strategic hub in Apple’s effort to reduce its reliance on China amid persistent US-China trade tensions.

The new Foxconn facility is part of a 13,180 crore ($1.58 billion) project greenlit last year by the Tamil Nadu government. Located in Kancheepuram, 80 km from Chennai, the plant is expected to support thousands of jobs and reinforce the government’s ‘Make in India’ initiative.

Moreover, India’s Production Linked Incentive (PLI) scheme has made the country even more attractive for global tech giants. Foxconn, Tata Electronics, and Pegatron — Apple’s three primary suppliers — have collectively received over Rs 6,600 crore in incentives between 2022 and 2025, accounting for more than 75% of all disbursed smartphone subsidies.

A global realignment in the making

Apple’s move comes against the backdrop of deepening trade rifts and realignments. With tariffs on Chinese goods still looming, India offers a stable and increasingly lucrative alternative.

Ironically, while Trump calls for onshoring, the numbers tell a different story. In FY25 alone, India exported mobile phones worth over ₹2 lakh crore — ₹1.5 lakh crore of which came from iPhones.

Tim Cook, who has publicly acknowledged the strategic importance of diversifying Apple’s manufacturing footprint, had earlier hinted that a majority of iPhones sold in the U.S. could be made in India by mid-2025.

Yet, recent trade softening between Washington and Beijing could complicate things. A thaw in US-China relations might slow the pace of supply chain migration. Still, few analysts believe it would be enough to derail India’s momentum.

India’s tech moment has arrived

With a $23,000 crore government-backed incentive plan for electronics components now cleared, India’s appeal as a manufacturing destination continues to rise. The policy is expected to draw even more of Apple’s suppliers — and potentially set the stage for the country to become a full-spectrum production powerhouse.

While Trump’s comments may resonate with his domestic base, they appear to be no match for the tectonic forces reshaping global manufacturing.

Apple, for now, is placing its bet — not in rhetoric, but in rupees.