Taiwanese electronics giant Foxconn, the world’s largest contract electronics manufacturer and a key supplier for Apple, has received the green light from Taiwan’s government to invest over $2.2 billion in India and the United States. This move marks a major step in Foxconn’s strategy to expand beyond China and strengthen its global manufacturing network.
Big Investments in India and the US
Of the total investment, about $1.49 billion will flow through Foxconn’s Singapore subsidiary into Yuzhan Technology (India) Pvt Ltd, a Foxconn owned company in India. This money will be used to set up a new factory in India focused on producing iPhones and their components. The new facility is part of Foxconn’s plan to make India a major hub for electronics manufacturing, especially as global companies look to diversify away from China due to ongoing trade tensions.
In the US, Foxconn will invest $735 million to establish a new company, Project ETA (DE) LLC. This unit will focus on making equipment for data centers and assembling servers, helping Foxconn tap into the fast-growing American tech infrastructure market.
Why India and the US?
Foxconn’s expansion comes at a time when global supply chains are being reshaped by geopolitical tensions and a push for diversification. India has become an attractive destination for electronics manufacturing thanks to government initiatives like ‘Make in India’ and the Production Linked Incentive (PLI) scheme, which offer incentives for local production. These policies have helped India attract record levels of foreign investment and transform into a key player in global electronics supply chains.
For Apple, shifting more iPhone production to India also helps reduce its dependence on China and avoid high tariffs on exports to the US. In fact, Foxconn now ships 97% of iPhones made in India to the US, up sharply from 50% last year. This shift has drawn criticism from some US politicians but is seen by Apple as a smart move to keep costs down and ensure supply chain stability.
A Growing Global Footprint
Foxconn is not just betting on India and the US. The company is also expanding its presence in Mexico, Vietnam, and Europe as part of its global diversification strategy. Currently, Foxconn operates 223 factories and offices in 24 countries, including 54 in the US and 12 each in India and Europe.
What’s Next?
Foxconn’s latest investments signal a new era for global electronics manufacturing, with India and the US playing bigger roles in the supply chain. As more companies look to reduce risks and tap into new markets, Foxconn’s bold moves could set the tone for the industry’s future.
For India, the investments are a vote of confidence in its manufacturing capabilities and government policies. For the US, Foxconn’s new facility will support the growing demand for data center equipment and server assembly.
As the world’s electronics industry continues to evolve, Foxconn’s big bets on India and the US show that the company is ready to lead the way in the next chapter of global manufacturing.
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