Apple's primary manufacturing partner, Foxconn, is making a significant investment of $2.56 billion to establish a sprawling 300-acre iPhone production facility in Devanahalli, Karnataka. This move is part of Apple's broader strategy to diversify its manufacturing base beyond China.
The new campus will feature dormitories capable of housing approximately 30,000 employees, making it one of the largest worker accommodations in India. Notably, women are expected to comprise 50–80% of the workforce, with priority given to female staff for accommodation.
Foxconn aims to produce 100,000 iPhones by December this year at the Devanahalli facility. This initiative is anticipated to significantly boost India's electronics manufacturing sector and contribute to the country's economic growth.
Apple's Commitment Amidst Political Pressures
Despite U.S. President Donald Trump's expressed desire for Apple to limit its manufacturing expansion in India, Apple CEO Tim Cook remains steadfast in his commitment to the Indian market. Cook has announced plans for a substantial portion of iPhones sold in the U.S. to be manufactured in India, highlighting the strategic importance of the region.
Foxconn, formally known as Hon Hai Technology Group (Foxconn), is a Taiwanese multinational electronics contract manufacturing company headquartered in Tucheng, New Taipei City, Taiwan. It is the world's largest contract manufacturer of electronics and a crucial component of the global technology supply chain.
Core Business and Services:
Electronics Manufacturing Services (EMS): Foxconn's primary business is providing comprehensive EMS, meaning it manufactures electronics on behalf of other companies. It's an OEM (Original Equipment Manufacturer), ODM (Original Design Manufacturer), and increasingly, an IIDM (Innovation Integration Design Manufacturer), integrating design, manufacturing, and supply chain solutions.
Major Clients: Foxconn is famous for being a key supplier to many of the world's largest technology companies, including Apple (manufacturing a significant portion of iPhones), Microsoft (Xbox), Amazon, Google, and others.
Product Categories: While best known for smartphones, Foxconn's manufacturing capabilities extend to:
Smart Consumer Electronics: Smartphones, TVs, game consoles, wearable devices, audio systems.
Cloud and Networking Products: Servers, communication network equipment, edge computing, data centers, satellite communications.
Computing Products: Desktop computers, laptops, tablets, multi-function devices, printers.
Components and Others: Connectors, optical components, electronic components, semiconductor products, automotive equipment, and services like logistics and software development.
Worldwide Network: Foxconn boasts a robust global network spanning over 24 countries with over 230 campuses.
Major Hubs:
China: Remains Foxconn's largest manufacturing base, with numerous "Technology Parks" (often resembling small cities) in places like Zhengzhou (known as "iPhone City"), Longhua, Yantai, Chengdu, Chongqing, Wuhan, and Weihai.
Taiwan: Its headquarters and significant manufacturing operations.
Americas: Facilities in the United States (e.g., Wisconsin, Ohio focusing on EV operations) and Brazil.
Europe: Presence in various European countries.
Southeast Asia: Growing presence in countries like Vietnam.
India: Increasingly significant, with major investments and production hubs in states like Tamil Nadu and Karnataka.
Beyond Contract Manufacturing: Under the leadership of its founder Terry Gou (and current Chairman Young Liu), Foxconn has been actively diversifying beyond pure contract manufacturing.
Automation and Smart Manufacturing: Investing heavily in automation, industrial internet solutions, and advanced technologies like AI, cloud computing, and robotics, often through its subsidiary Foxconn Industrial Internet (Fii). They are collaborating with companies like Siemens to build "factories of the future" leveraging AI and digital twin technology.
Artificial Intelligence (AI Servers): AI servers have become a major growth driver for Foxconn, with revenue from this segment expected to surpass consumer electronics soon. They are building AI factories and partnering with companies like NVIDIA.
Electric Vehicles (EVs): Foxconn is entering the EV market, providing contract manufacturing services for EV components and even developing its own EV platforms (e.g., the MIH open-source EV platform) and models. They aim to assist traditional automakers like Mitsubishi in selling models they design and develop.
Semiconductors and Space: Foxconn is expanding into semiconductor manufacturing and packaging, as well as satellite constellation manufacturing, exploring partnerships with companies like Thales Group for advanced packaging and high-quality satellite production.
Diversification from China: Driven by geopolitical tensions (like US-China trade disputes) and a desire to diversify supply chains, Foxconn is making substantial investments in India.
iPhone Production: India is rapidly becoming a major hub for iPhone manufacturing. Foxconn is heavily invested in facilities in Tamil Nadu (for component manufacturing and assembly) and Karnataka (new large iPhone manufacturing campus).
Foxconn Recent Investments (2025):
Announced a $1.5 billion investment through its Singapore-based arm into its Indian subsidiary, Yuzhan Technology India (which makes smartphone components in Tamil Nadu).
Partnered with HCL Group to set up a semiconductor fabrication facility near Noida, Uttar Pradesh, with an estimated cost of ₹3,700 crore, to produce display driver chips.
Significant investment (over $2.56 billion) in the Devanahalli facility in Karnataka, which is building dormitories for up to 30,000 workers (prioritizing women) and aims to produce over 100,000 iPhones by December 2025, with shipments starting as early as June 2025. Apple CEO Tim Cook has stated that most iPhones sold in the US in the June quarter are expected to be manufactured in India.
Strategic Importance: India's growing capabilities, market potential, and government incentives (like Production Linked Incentive - PLI schemes) are making it a key strategic location for Foxconn's global operations.
In summary, Foxconn is much more than just an assembler of iPhones; it's a global manufacturing behemoth at the forefront of electronics production, increasingly diversifying into high-tech sectors like AI, EVs, and semiconductors, while navigating complex labor and geopolitical challenges. Its significant expansion in India underscores a major strategic shift in global electronics supply chains.
Foxconn's substantial investment in the Devanahalli iPhone manufacturing campus signifies a pivotal moment in India's ascent as a global manufacturing hub. By focusing on large-scale production and prioritizing workforce accommodation, particularly for women, this initiative not only aligns with Apple's diversification strategy but also reinforces India's growing significance in the global electronics supply chain.