Apple Expands in India as Foxconn Starts iPhone Casing Production Despite Trump's Tariff Threats

Apple's long-time manufacturing partner Foxconn has begun constructing a new production facility in Tamil Nadu, India, to manufacture iPhone casingsfor the first time in the country. This marks a significant expansion of Apple's supply chain in South Asia and a new milestone for Foxconn's Indian operations.

Foxconn to Manufacture iPhone Cases in Tamil Nadu

Foxconn has started building a dedicated iPhone case production facility at the ESR Industrial Park in Oragadam, located in Tamil Nadu. According to MacRumors, the facility will span approximately 500,000 square feet.

This site will sit adjacent to another Foxconn building currently under development, which is expected to handle display module assembly for Apple products. While Foxconn has long assembled iPhones in India, particularly near Sriperumbudur, this is the company's first foray into producing iPhone enclosures in the country.

It is worth noting that iPhone casing production in India is not new. Tata Electronics, another key Apple supplier, has been manufacturing iPhone cases at its plant in Hosur, Tamil Nadu. Until now, Tata has been Apple's main partner in India for iPhone enclosures. With Foxconn entering this segment, Apple's local sourcing capability is set to expand.

A Strategic Step for Foxconn and Apple

According to 9to5Mac, the move is a significant one for Foxconn. Although iPhone casings account for just 2 to 3 percent of the total bill of materials, the addition of this manufacturing capability in India strengthens Foxconn's overall presence in the country.

Neil Shah, co-founder of Counterpoint Research, said that despite the expansion, Foxconn's total value addition within India is expected to remain at or below 10 percent. Apple continues to source iPhone enclosures from a range of global suppliers, so Foxconn's role will be complementary.

Trump's Opposition to Apple's India Expansion

US President Donald Trump has previously expressed disapproval of Apple's increasing reliance on Indian manufacturing. In May 2025, he warned Apple CEO Tim Cook about shifting iPhone production away from the United States.

'I do not want you building in India,' Trump reportedly told Cook after Apple committed a £371 billion investment in the United States. He also threatened a 25 percent tariff on iPhones produced in India but sold in the American market.

'I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America to be manufactured and built in the United States, not India or anyplace else. If that is not the case, a tariff of at least 25 percent must be paid by Apple to the US,' Trump stated.

Apple Continues Indian Expansion

Despite mounting political pressure from the US, Apple appears committed to expanding its footprint in India. The shift is part of a broader strategy to reduce dependence on Chinese manufacturing and diversify global production.

Analysts estimate that by the end of 2025, iPhone assembly in India will reach 24 million units, doubling the 12 million units produced in 2023. The move not only strengthens Apple's position in the Indian market but also bolsters its global supply chainresilience.