Foxconn, a Taiwanese contract manufacturer, has started the production of Apple AirPods at its Hyderabad facility for export, and its larger plant in Bengaluru is set to commence operations soon in order to ramp up iPhone production in India, sources said. This comes in the backdrop of US-China trade tensions and President Donald Trump’s sweeping tariffs which have now exceeded 100 per cent on certain categories of Chinese goods. In response to this, Apple is doubling down on India as a strategic manufacturing hub, positioning it as an alternative to China. The US tariff on Chinese products is being looked at as a threat to the supply chain stability and will potentially drive up iPhone prices.
“Yes, Apple AirPods production at Foxconn’s new Hyderabad facility has started for export purposes. The new Bengaluru facility will also soon start operations for iPhone production and will play a key role in ramping up exports from India,” a person familiar with the matter said. “The new plant will have a peak capacity of 20 million units per annum, they added.
The Bengaluru facility, located in Devanahalli town, will be Foxconn’s second-largest facility outside China, which is being set up with an investment of $2.8 billion (Rs 25,000 crore). The Taiwanese firm has kicked off trial production of the iPhone 17 series in India, while Tata Electronics is also involved in the trial production of components such as casings for the new lineup, a report stated.
Another person aware of the matter told the news platform that Tata Electronics’ new iPhone factory in Hosur has begun operations and is currently assembling older generation iPhones. “The Tata plant will begin shipments in the coming days,” they said, adding that the plant will ramp up production in the coming months. After Foxconn, Tata Electronics has become Apple’s second key supplier, having acquired the India factories of Taiwanese contract manufacturers Pegatron and Wistron.
Apple is working towards its goal of shifting the production of over 60 million iPhones annually, covering all US demand, to Indian factories by the end of 2026, per an earlier report. In the wake of tariff-related uncertainty, Apple has stepped up production in India and shipped iPhones worth $2 billion to the US in March – a monthly record for both Tata and Foxconn.
“These are logical and necessary steps to scale up production in India with a medium-term goal of reducing dependency on China—especially given the high tariffs on Chinese products going into the US. With increased production levels leading to higher exports from India, Apple can meet demand for the US, its largest market,” Navkendar Singh, Associate Vice President at IDC India, said.