Tata Plant Begins iPhone Production As Apple Eyes India Amid Trump Tariff Threats To China Production
A second facility operated by Taiwan’s Foxconn will begin initial operations in the coming days.
With a trade war erupting between the US and China and “Trump Tariffs” threatening supply chain disruptions and igniting concerns about an increase in iPhone costs, Apple is eyeing India as an alternative to China for the manufacturing of iPhones.
According to a report by Reuters, a new iPhone manufacturing facility in Tamil Nadu has begun production, and another will start shipping in May as the Cupertino-based tech major expands its manufacturing outside of China, its primary manufacturing base that is being impacted by tariffs.
According to the report, which cited information from a source, a Tata Electronics facility in Hosur, Tamil Nadu, has begun production of older iPhone models on a single assembly line. Additional sources, including a government official, also claim that a second $2.6 billion facility operated by Taiwan’s Foxconn near Bengaluru, Karnataka, will begin initial operations with one assembly line in the coming days.
The report added that the factory, where iPhone 16 and 16e models are anticipated to be manufactured, can generate between 300 and 500 units each hour.
According to research firm Counterpoint, China produces about 75% of the iPhones manufactured worldwide, with India contributing roughly 18%. As per another Reuters report, Apple is aiming to shift manufacturing of the majority of its iPhones sold in the US to facilities in India by the end of 2026.
US President Donald Trump has imposed up to 145% tariffs on Chinese imports as part of a continuing trade battle. Although the tariffs haven’t been so far levied on electronics made in China, there have been hints dropped that some tariffs may be implemented in the coming weeks.
In order to avoid these tariffs, Apple has increased manufacturing in India in recent weeks. In March, the company reportedly shipped 600 tons of iPhones to the US, which were worth $2 billion. This also set a monthly record for both Tata and Foxconn, with Foxconn producing $1.3 billion worth of handsets.
