2025-04-30T02:49:23Z

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As the Trump administration continues to apply significant pressure on major tech companies, including Apple, to shift their manufacturing operations back to the United States, the tech giant is increasingly looking to India as an alternative production hub. Recent reports from Reuters indicate that Apple has initiated efforts to move more of its iPhone production out of China, marking a strategic pivot towards India as a key player for assembling its flagship devices.

In recent days, Apple has launched operations at a new iPhone assembly plant located in Hosur, a city in the southern Indian state of Tamil Nadu. This facility, operated by Tata Electronics, is primarily tasked with assembling older generation iPhone models. The opening of this factory is a part of Apple's larger strategy to diversify its manufacturing base, particularly in light of ongoing geopolitical tensions and tariffs that could impact their supply chain.

Furthermore, a second assembly plant, run by Taiwan's Foxconn, is currently under construction in Bengaluru, Karnataka. This facility, which represents a significant investment of $2.6 billion, is expected to become operational within days, starting with one assembly line. Sources familiar with the project mention that the Foxconn factory is anticipated to have a production capacity of 300 to 500 iPhones per hour. Notably, the iPhone 16 and the iPhone 16e models are expected to be among the first devices assembled at this location.

From an employment perspective, the Foxconn facility in India is projected to create around 50,000 jobs by the end of 2027, contributing significantly to the local economy. This investment is part of a broader $2.6 billion initiative aimed at enhancing manufacturing capabilities in India. In comparison, Apple has also committed to a massive $500 billion investment in the United States over the next four years, which is estimated to generate approximately 20,000 jobs in the American market.

Apple's ambition to shift the majority of its U.S.-sold iPhone production from China to India by the end of next year aligns with the company's long-term goal of reducing dependence on Chinese manufacturing. Currently, Apple enjoys exemptions from tariffs imposed by the Trump administration on imports from China. However, these exemptions are viewed as temporary, further motivating Apple to accelerate its production shift.

In a statement reflecting the administration's stance, officials have suggested that Apple is eager to establish iPhone manufacturing operations in America as soon as feasible, emphasizing the need for advanced robotic technology to facilitate this transition. The Trump administration's ongoing negotiations with Apple highlight the complexities and challenges faced by multinational corporations operating in an increasingly polarized economic environment.