Foxconn will increase its production of phones in the South Asian nation to mitigate tariff risks

iPhone maker Foxconn will invest $1.5 billion in India in attempt to mitigate tariff risks, the Taiwanese electronics manufacturer revealed in a London Stock Exchangefiling.

Foxconn's Singapore subsidiary will make this investment in its Indian subsidiary Yuzhan Technology India, according to the filing. Yuzhan Technology India, Foxconn's unit in the southern state of Tamil Nadu, currently manufactures electronic components and assembles Apple iPhones.

Apple is increasing its presence in India by scaling up domestic manufacturing and expanding its local operations. Earlier this month, local media reported that Apple told India's Ministry of Communications that it planned to move the assembly of all iPhones to the country from China. The shift comes amid rising trade tensions between Washington and Beijing.

Apple CEO Tim Cook reportedly confirmed the production shift during the company's quarterly earnings call, saying "the majority of iPhones sold in the US will have India as their country of origin."

With more than 60 million iPhones expected to be sold annually in the US by end-2026, Apple would need to double production in India, according to media reports. The company assembles about 20% of its phones there; in the 12 months ending in March, these were worth $22 billion, a 60% increase. China, however, still accounts for roughly 80% of Apple's production capacity.

Apple is considering India as a potential alternative manufacturing hub due to the tariffs which have been imposed by US President Donald Trump on China, which have led to concerns regarding supply chain disruptions and the possibility of higher iPhone prices.

The California-headquartered company's purported plans to make more iPhones in India have prompted US President Donald Trump to recently advise Cook to avoid expanding the company'smanufacturing operationsin the South Asian country.

However, establishing iPhone manufacturing in the US, where Apple lacks existing facilities, would require significant time and investment, analysts opined. "It would potentially double prices and a $1,599 iPhone could reach $3,500 impacting consumer demand and Apple's market position," Sonam Chandwani, a managing partner at KS Legal & Associates, told RT.

(RT.com)