Taiwanese electronics giant Foxconn has started manufacturing Apple AirPods at its Hyderabad facility for export, while preparations are underway to launch operations at a larger plant in Bengaluru aimed at scaling up iPhone production in India, sources told Moneycontrol.
This development comes as Apple intensifies its focus on India as a key manufacturing base, positioning it as a strategic alternative to China amid escalating U.S.-China trade tensions and heavy tariffs—some exceeding 100%—on Chinese goods. These tariffs risk disrupting supply chains and could significantly drive up iPhone prices.
“Yes, production of AirPods at Foxconn’s Hyderabad unit has commenced for export. The Bengaluru plant will soon start producing iPhones and is expected to significantly boost Apple’s export capacity from India,” a source familiar with the matter said. The facility is projected to reach a peak annual output of 20 million units.
Located in Devanahalli, near Bengaluru, the new Karnataka plant will be Foxconn’s second-largest outside China, backed by an investment of $2.8 billion (₹25,000 crore).
Foxconn has also initiated trial production of the upcoming iPhone 17 series in India. Meanwhile, Tata Electronics is testing production of key components, including casings, for the same lineup.
Tata’s new facility in Hosur has started assembling older-generation iPhones and is set to begin shipments shortly, according to another source. The company plans to ramp up output in the coming months.
Tata Electronics has rapidly become Apple’s second major manufacturing partner in India after acquiring local operations of Taiwanese firms Pegatron and Wistron.
Apple reportedly plans to shift production of over 60 million iPhones annually to India by 2026—enough to cover all U.S. demand, Moneycontrol reported on April 26.
Amid global trade uncertainties, Apple has scaled up India production significantly, exporting iPhones worth $2 billion to the U.S. in March alone—a monthly record for both Tata and Foxconn.
Foxconn accounted for the bulk of March production, though Tata’s contribution is expected to grow with the launch of its new plant.
Apple, Foxconn, and Tata Electronics declined to comment on the developments.
Industry analysts believe the expansion of iPhone and AirPods manufacturing in India marks a strategic move to reduce reliance on China.
“These are logical and necessary steps toward scaling production in India, especially given the high tariffs on Chinese imports into the U.S.,” said Navkendar Singh, Associate Vice President at IDC India. “India has proven its capability and reliability as a long-term electronics export hub.”
Apple produced around 40–45 million iPhones in India in 2024—roughly 18–20% of its global output—serving both domestic and international markets. Analysts expect that share to rise to 25–30% by 2025.
