Apple’s India Expansion Continues Despite Trump’s Remarks, as Foxconn Commits $1.5 Billion to Display Module Plant

Apple’s supply chain diversification into India remains firmly on track, as its key manufacturing partner Foxconn confirmed a major new investment in the country, just days after former U.S. President Donald Trump publicly criticized Apple’s growing production footprint in India.

In a filing with the London Stock Exchange earlier this week, Foxconn announced a $1.49 billion investment in its Indian subsidiary, Yuzhan Technologies (India) Pvt. Ltd.

This significant infusion of capital is earmarked for a new display module manufacturing facility in Tamil Nadu, where Foxconn already operates one of its primary iPhone assembly plants.

The upcoming facility is expected to be located in Kancheepuram, about 80 kilometers from Chennai. The Tamil Nadu government had already given the green light to the ₹13,180 crore (approximately $1.58 billion) project last October. The latest funding is likely to support this same initiative.

This development comes in the wake of comments by Donald Trump, who recently revealed that he had urged Apple CEO Tim Cook to reconsider production in India.

Speaking after a meeting with U.S. and Qatari business leaders, Trump said, “I had a little problem with Tim Cook yesterday. I told him, ‘Tim, you’re my friend, and I’ve supported you. You’re coming here with a $500 billion announcement, and now I hear you’re expanding all over India.

I don’t want you building in India unless it’s just to help India. India is one of the highest tariff nations in the world. We supported you when you built in China, but we’re not okay with this shift.”

Despite the sharp remarks, Apple appears undeterred. Company representatives in India reportedly assured government officials that there has been no change in their expansion plans.

According to a senior Indian government official, “Supply chains for a company of Apple’s scale are not altered overnight.

Strategic decisions like these are made over months or even years. A single comment isn’t going to derail their ongoing efforts to scale up in India.”

Apple has increasingly viewed India as a vital part of its global supply chain, especially as it seeks to reduce dependence on China amid ongoing geopolitical tensions.

Currently, around 15% of all iPhones are assembled in India, and the company aims to raise this figure to 25% shortly. India has already become a crucial hub for Apple’s suppliers, reflecting the success of the government’s ‘Make in India’ initiative.

India’s mobile phone exports reached an all-time high of ₹2 lakh crore in FY25, with Apple’s iPhones alone contributing ₹1.5 lakh crore, Union IT Minister Ashwini Vaishnaw announced earlier. These figures underline Apple’s expanding role in India’s export economy.

Apple has previously stated that trade uncertainties between the U.S. and China were among the key factors behind its decision to move more production to India.

CEO Tim Cook had even confirmed that a majority of iPhones sold in the U.S. in the June quarter would be manufactured in India.

However, a recent U.S.-China trade agreement could potentially alter the dynamics, posing a challenge to Apple’s ongoing shift.

Still, industry analysts believe the high tariffs on Chinese imports and India’s policy incentives make the subcontinent an attractive alternative manufacturing destination.

While a cooling of tensions between Washington and Beijing may influence Apple’s long-term decisions, the momentum behind Apple’s Indian expansion, supported by massive infrastructure investments like Foxconn’, suggests the country will remain a central pillar of its global manufacturing strategy.