Trump warns Apple, but Foxconn to proceed with $1.5 bn Chennai iPhone plant

Apple’s top supplier, Foxconn, is moving forward with a $1.5 billion investment in a new component factory near Chennai, despite mounting political pressure from US President Donald Trump to shift production back to the United States.

Two Indian government officials confirmed with the Financial Times that the Taiwanese electronics giant is setting up the new plant in Tamil Nadu’s Oragadam industrial hub, next to its existing iPhone assembly unit.

The new plant will assemble the display module, an important component that sits beneath an iPhone’s screen and powers the touch interface, brightness and colour quality. Once operational, it will become one of the largest investments in India’s electronics sector to date.

Foxconn disclosed the investment through a filing on the London Stock Exchange earlier this week, stating that the funds would go into its Indian subsidiary, Yuzhan Technology India. The Tamil Nadu government had already cleared the project in October, with expectations that it would generate around 14,000 jobs.

Donald Trump tells Apple CEO to make in US, not India

The move comes at a time when Apple is deepening its manufacturing footprint in India, even as President Trump publicly criticised the company for expanding abroad. Speaking last week during a visit to Qatar, Trump claimed he had urged Apple CEO Tim Cook not to build factories in India unless they directly served the Indian market.

“He is building all over India. I don’t want you building in India,” Trump said, adding that Apple should instead increase production in the United States. Despite those remarks, Apple seems to be moving forward with its plans.

India to manufacture US-bound iPhone

India’s share of global iPhone production reached 18 per cent in 2024 and is expected to rise to 32 per cent by 2025, according to market research firm Counterpoint. Apple is also reportedly aiming to make all 60 million iPhones sold annually in the US in India by the end of next year.

Apple assembled $22 billion worth of iPhones in India in the financial year that ended on March 31, 2025, a nearly 60 per cent jump from the previous year.

India has played a growing role in Apple’s global plans, as the tech giant looks to diversify its production. Tensions between Washington and Beijing, along with US tariffs on Chinese imports this year, have further accelerated Apple’s shift.

Most iPhones made in India are currently assembled at Foxconn’s facility in Tamil Nadu. Tata Group, which recently took over Wistron’s local operations and oversees Pegatron’s plants, is also ramping up production in southern India.