BENGALURU, India — Taiwanese electronics giant Foxconn has officially started production of the iPhone 17 at its new Bengaluru facility, marking a significant expansion of Apple’s manufacturing operations outside China. The Devanahalli-based factory is Foxconn’s second-largest production site beyond China, backed by a $2.8 billion (approx. Rs 25,000 crore) investment.
Chinese Engineer Recall Raises Supply Chain Concerns
Earlier in 2025, over 300 Chinese engineers were repatriated from India, temporarily disrupting Foxconn’s operations. These engineers were crucial for training local workers and deploying advanced assembly techniques. Foxconn quickly mitigated the gap by bringing in staff from Taiwan and other locations, ensuring production continuity.
Apple’s India Production Goals
Apple aims to ramp up iPhone manufacturing in India, targeting 60 million units in 2025 — up from 35–40 million units in the previous fiscal year. In FY 2024–25, Apple assembled around $22 billion worth of iPhones in India, a 60% year-on-year increase.
CEO Tim Cook highlighted that most iPhones sold in the U.S. during Q2 2025 were shipped from India, underscoring the country’s growing role in Apple’s global supply chain. S&P Global reported that 3.1 million iPhones were exported from India in March 2025 alone.
Geopolitical and Operational Challenges
Foxconn’s recall of Chinese engineers highlights the vulnerability of global supply chains to geopolitical factors. China’s restrictions on skilled labor transfers have slowed training in India and delayed some production timelines. Apple and Foxconn are now relying on Taiwanese and Vietnamese staff to maintain operational efficiency, demonstrating the complexities of supply chain resilience in high-tech manufacturing.
Embed from Getty ImagesLocal and Government Response
Karnataka’s Deputy Chief Minister DK Shivakumar called the production launch a “historic moment” for Bengaluru, tweeting:
“Namma Bengaluru Takes India to the Apple Era! Bengaluru is inscribing history as the manufacturing of the iPhone 17 commences at Foxconn’s new facility with an Rs 25,000 crore investment.”
The Indian government has also taken steps to support skill development and technology transfer to local workers, helping to offset potential operational setbacks.
Apple’s Market Growth in India
Apple’s iPhone shipments in India grew 21.5% year-on-year to 5.9 million units in the first half of 2025. The iPhone 16 remains the most shipped model, while Apple secured a 7.5% share of India’s smartphone market in Q2 2025. However, Chinese brands like Vivo continue to dominate, holding 19% market share.
Investment Implications and Supply Chain Outlook
Foxconn’s Bengaluru facility represents a strategic move to diversify production and reduce dependence on China. Investors and analysts are watching closely to see how geopolitical risks, labor mobility, and local manufacturing challenges will impact Apple’s global supply chain efficiency.
Conclusion
Foxconn’s iPhone 17 production in India demonstrates the growing importance of global supply chain diversification. While geopolitical challenges remain, India is emerging as a critical hub for Apple, combining local investment, government support, and strategic workforce planning to secure long-term manufacturing resilience.
