Apple has started production at a new iPhone manufacturing facility in Tamil Nadu, India, operated by Tata Electronics in Hosur. This facility is currently producing older iPhone models.

A second plant in Karnataka, a US$2.6 billion factory being built by Taiwan’s Foxconn in Bengaluru, is set to begin operations soon.

The Bengaluru plant will manufacture iPhone 16 and 16e models and is expected to create up to 50,000 jobs by December 2027.

India now accounts for about 18% of global iPhone production, compared to over 75% from China. Apple plans to manufacture most US-sold iPhones in India by the end of 2026.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Apple’s India push follows decades of manufacturing migration from US to Asia

Apple’s current shift to India represents the latest chapter in a manufacturing journey that began decades ago in the United States.

The company once maintained multiple domestic factories, including a 150,000 sq. ft. plant in Carrollton, Texas, and a highly automated facility in Fremont, California, specifically built for Macintosh production in 1983 1.

By 2004, Apple had shuttered its last US manufacturing operations in Elk Grove, California, completing a transition to overseas production driven by labor costs, supply chain logistics, and scaling challenges 1.

The Fremont factory’s closure in 1992 marked a pivotal moment. Despite Steve Jobs’ vision of creating automated US factories inspired by Japanese manufacturing techniques, the facility couldn’t sustain his ambitious production targets 2.

A key advantage of Apple’s Chinese manufacturing has been workforce flexibility and proximity to suppliers. Foxconn’s factories could hire thousands of workers rapidly and access components from nearby facilities, capabilities US plants couldn’t match 3.

2️⃣ Geopolitical tensions fundamentally reshaping global electronics supply chains

The expanding India production footprint reflects broader economic shifts triggered by US-China tensions that have dramatically altered trade patterns since 2017.

China has lost nearly $150 billion in electronics exports to the US due to these tensions, creating opportunities for countries like India, Mexico, and Vietnam to capture redirected investment and production 4.

Despite Apple aiming to move production of most US-sold iPhones to India by 2026, China still accounts for 75% of iPhone production globally, demonstrating the challenges and timeframes involved in supply chain reconfiguration.

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