Apple Supplier Foxconn Expands India Operations Despite Trump's Objections

iPhone maker Apple's (AAPL) key supplier Foxconn is continuing to expand its India operations, despite repeated objections from U.S. President Donald Trump. Taiwan's Hon Hai Precision Industry (Foxconn) is preparing to invest $1.5 billion in India's Tamil Nadu state. The new facility will focus on manufacturing display modules for Apple's devices and will be located right next to its current iPhone assembling unit near Chennai. The Financial Times first reported on the matter, citing comments from two government officials.Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Apple's Reliance on India Draws Trump's Ire Foxconn announced the investment earlier this week, stating that the billions would flow to its Indian subsidiary, Yuzhan Technology India. Foxconn's expansion plans in India continue despite strict objection from Trump. During his visit to Qatar last week, Trump openly slammed Apple for focusing on manufacturing in India, instead of bringing production back to the U.S. Trump commented "He is building all over India. I don't want you building in India." Trump has also personally told Apple CEO Tim Cook that he should refrain from building in India and bring back production to his home country. The news of Foxconn's new facility comes shortly after the Indian government approved the company's $450 million chip assembly plant in the northern state of Uttar Pradesh. Apple is steadily shifting its manufacturing base from China owing to growing geopolitical risks, and India has become one of its most sought-after hubs. The iPad maker also manufactures devices in Vietnam and Malaysia. Apple also came issued a bold statement, mentioning that all of the iPhones sold in the U.S. will come from India. Trump has been criticizing Apple's moves, and has clearly asked Apple not to build more manufacturing facilities in India unless they are meant to serve only the Indian market. India Emerges as a Major iPhone Hub India is emerging as a major iPhone manufacturing hub, following China's exit. According to research by Counterpoint, in 2024, India's share of global iPhone production grew to 18%, and is expected to shoot up to 32% by this year end. Additionally, Apple is seemingly looking to produce all of its 60 million iPhones sold annually in the U.S. in India by the end of 2026. For the financial year ending March 31, 2025, India assembled nearly $22 billion worth of iPhones, up 60% from the prior year. Moreover, reports emerged last week that Foxconn is building a 300-acre campus in India's Karnataka state, representing a massive $2.56 billion investment. The campus will include dormitories for its nearly 30,000 workers who assemble iPhones. Is AAPL a Good Buy? Analysts remain divided on Apple's long-term stock trajectory. On TipRanks, AAPL stock has a Moderate Buy consensus rating based on 17 Buys, eight Holds, and four Sell ratings. Also, the average Apple price target of $228.65 implies 13.6% upside potential from current levels. Year-to-date, AAPL stock has lost 19.4%. See more AAPL analyst ratings Disclaimer & DisclosureLooking for a trading platform? Check out TipRanks' Best Online Brokers , and find the ideal broker for your trades.Report an Issue