Apple manufacturing in India latest news: iPhone manufacturer Apple is rapidly expanding its iPhone production in India. Actually, the company wants to move its supply chain away from China. India has become an attractive option for Apple due to the policies of the Indian government and low-cost labor. Although Apple is still heavily dependent on China, India is gradually becoming an important manufacturing center for the company.

Highlights
How has Apple established itself in India
Is the company taking advantage of an opportunity in disaster
Is India becoming a semiconductor hub

New Delhi: iPhone manufacturer Apple is preparing to take advantage of the opportunity in the disaster. In view of the trade war between America and China, Apple is rapidly increasing the production of iPhones in India. It is estimated that in the last 12 months in March 2025, iPhones worth about $ 22 billion i.e. about Rs 1.90 lakh have been made in India. This is 60% more than last year. This is when Apple is taking its supply chain away from China and this increase in production is being said to be the result of that. China is also tense about this, because in such a situation its supremacy in this matter may end. Know the whole story

Every fifth iPhone in the world is made in India

According to a Bloomberg report, now one out of every five iPhones made in the world is being made in India. This $22 billion figure is the price of the iPhone coming out of the factory. This is its retail selling price. The biggest part of this production comes from Foxconn’s huge factory in South India. Tata Group, which has taken control of the operations of Wistron and Pegatron, is playing an important role in Apple’s India-based supply chain. Semiconductors play a big role in all this, over which a big war has broken out between the US and China.

Let’s understand what are semiconductors

One of the essential components of electronic devices is a semiconductor, also known as an integrated circuit (IC). Semiconductor microchips enable artificial intelligence, traffic, healthcare, military systems, communications. Microchips are essential for these electronic devices: radios, televisions, computers, laptops, smartphones, vehicles and medical diagnostic equipment. Microchips are so important that some people call them the ‘new oil’ of the 21st century. This is an essential thing for Apple iPhone. Last year, Apple has also discussed promoting the manufacturing of semiconductor chips in India, so that chip manufacturing can start in India as well

2026 milestone for Apple iPhone
The main company that makes semiconductors for Apple iPhones is Taiwan Semiconductor Manufacturing Company (TSMC). According to industry experts, Apple will need a large amount of semiconductor chips by 2026. By then, the iPhone maker will have transferred 26 percent of its global manufacturing capacity to India. Apple’s current semiconductor consumption is around $72 billion, as all its high-end products such as iPhones, iPads, Macs, Apple Watches and AirPods use semiconductor chips. In such a situation, India’s potential is very big in this case.

Apple increased exports in view of Trump’s tariffs
Apple exported iPhones worth Rs 1.5 trillion (about $17.4 billion) from India in the last fiscal year. Shipments to the US increased after President Donald Trump announced ‘reciprocal’ tariffs in February. Apple then rapidly increased exports from India. While electronics, including smartphones, were exempted from those tariffs in the recent announcement, the rest of the taxes on China (totalling 245%) are still in place. Trump’s separate 20% tariff on goods coming from China, aimed at pressuring Beijing over fentanyl, also remains in place

US does not levy taxes on devices made in India
India is a relatively safe place for Apple. There is currently no tax in the US on devices made in India. Analysts believe the company will rely more on its Indian production lines for US customers.

This issue regarding China still remains
Although Apple has increased production in India, it is still very much connected to China. The company relies on about 200 suppliers and a strong system built over decades. Even Apple CEO Tim Cook has acknowledged China’s manufacturing capabilities.

Market shift from China to India will take a lot of time
Trump has been pushing for iPhone production in the US for a long time. However, it is difficult for Apple to do so in the near future. Because suitable facilities and skilled workers are not available in the US. A 2022 assessment by Bloomberg Intelligence estimated that it would take eight years to move just 10% of Apple’s manufacturing out of China. This shows how strong China’s supply base is.

Will India be able to become an alternative to the Chinese market

India is constantly trying to create an environment where it can produce products like the iPhone in a great way. Apple now makes all its iPhone models in India, including the premium Titanium Pro model. In fact, the Narendra Modi government’s Production-Linked Incentive (PLI) scheme and the new subsidy of $2.7 billion given for electronics and semiconductor manufacturing have also contributed. The PLI scheme means that the government gives incentives to companies for increasing production

Apple has 8% share of India’s smartphone market
Apple’s sales in India were around $8 billion in the last financial year, mostly iPhones. However, the company still has only 8% share of India’s smartphone market. But, the company now wants to make India a global manufacturing hub rather than a retail destination. It can be assumed that the company is hoping for better future prospects in India.

Expected 10 lakh jobs from semiconductors
A report released in November last year estimated that the semiconductor sector in India will generate 10 lakh jobs by 2026. The report by talent solutions company NLB Services said that as India is set to become a semiconductor manufacturing hub, the industry is set to generate 10 lakh jobs across multiple sectors by 2026. This includes an estimated 3,00,000 jobs in chip semiconductor fabrication, around 2,00,000 positions in ATMP and additional roles in chip design, software development, system circuits and manufacturing supply chain management

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