Apple Inc. AAPL is reportedly pushing forward with a major supply chain expansion in India through its top manufacturing partner, Foxconn, also known as Hon Hai Precision Industry Co. Ltd. HNHAF.
What Happened: Foxconn plans to invest $1.5 billion in a new display module plant near Chennai, India, reported the Financial Times, citing two government officials.
The facility will assemble screen components for iPhones, including the touch interface and brightness control.
Foxconn on Monday confirmed a $1.5 billion investment through a London Stock Exchange filing via its Indian unit, the report said.
Why It's Important: The investment comes as Apple deepens its manufacturing footprint in India, a move that reportedly aims to source all 60 million iPhones sold annually in the U.S. from Indian facilities by the end of next year.
However, the strategy is drawing political criticism. Earlier this month, President Donald Trump blasted Apple CEO Tim Cook.
"I had a little problem with Tim Cook yesterday," Trump said. "I said to him, ‘my friend, I treated you very good. You're coming here with $500 billion, but now I hear you're building all over India.' I don't want you building in India."
"I said, ‘Tim, look, we treated you really good, we put up with all the plants that you built in China for years, now you got to build us. We're not interested in you building in India, India can take care of themselves … we want you to build here,'" Trump said.
Following this, Indian sources said that Apple has reaffirmed its commitment to India as a key manufacturing hub, stressing that there has been “no change” in the tech giant's investment plans.
According to Counterpoint Research, India contributed 18% of global iPhone production in 2024 and is projected to reach 32% in 2025, the report added.
Price Action: Apple shares dipped 0.36% during Thursday's regular trading session, but recovered with a 0.70% gain in after-hours trading, according to Benzinga Pro.
Benzinga Edge Stock Rankings assigned Apple a growth score of 33.12%. Click here to compare it with other major players.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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