Apple Expands India Supply Chain, Boosts iPhone Production 50% by 2027

Apple Inc. is further expanding its supply chain in India with the commencement of production at new factories operated by Tata Group and Foxconn. The new factory in Karnataka, Bangalore, which has seen an investment of $2.6 billion by Foxconn Technology Group, is set to initiate its first assembly line for trial production in the coming days. This factory is capable of producing 300 to 500 units of the iPhone 16 per hour, with full production expected by December 2027, creating 50,000 new jobs.

This expansion comes at a time when Apple is strengthening its manufacturing presence in India, amidst ongoing trade tensions between the United States and China. This move is part of Apple's strategy to diversify its production base and reduce reliance on a single region. The new factory in Bangalore will significantly boost Apple's production capacity in India, allowing for more efficient and cost-effective manufacturing.

Tata Group, another key player in Apple's supply chain, has also started production at its new facility in Tamil Nadu, Hosur. This development aligns with Apple's broader goal of increasing its manufacturing footprint in India, which offers a large consumer market and favorable government policies for foreign investments. The new factories are expected to enhance Apple's ability to meet the growing demand for its products in the region and globally.

The commencement of production at these new facilities underscores Apple's commitment to India as a strategic manufacturing hub. By expanding its supply chain in India, Apple aims to mitigate risks associated with geopolitical uncertainties and supply chain disruptions. This move is also likely to create job opportunities and contribute to the economic development of the region.

The new factories are part of Apple's long-term strategy to diversify its supply chain and reduce its dependence on China. The ongoing trade tensions between the United States and China have made it imperative for companies like Apple to explore alternative manufacturing locations. India, with its large and growing consumer market, offers a viable option for Apple to expand its production capabilities.

Apple's plan to shift all iPhone assembly for the U.S. market to India by 2026 further emphasizes its commitment to this strategy. Despite temporary relief from smartphone tariffs, the uncertainty surrounding trade policies makes diversification a prudent move. This expansion is expected to have a positive impact on Apple's operations and its ability to meet the growing demand for its products, while also contributing to the economic development of the region.