India’s Tech Manufacturing Boom: Foxconn’s Greater Noida Expansion and Apple’s iPhone Production Surge

Executive Summary: India is rapidly becoming a leading global tech manufacturing hub, fueled by investments from major players like Foxconn and Apple. As of April 14, 2025, Foxconn is in early discussions to acquire 300 acres in Greater Noida, Uttar Pradesh, for its first North India facility. Concurrently, Apple has manufactured $22 billion worth of iPhones in India in the past year, marking a strategic shift from China amidst geopolitical tensions and US tariffs. These developments are aligned with India’s $23 billion production-linked incentive (PLI) scheme, though concerns remain over its effectiveness. India’s electronics exports have risen 20% year-on-year, creating jobs but intensifying competition with China as companies diversify their supply chains.

Background: India’s efforts to establish itself as a manufacturing powerhouse date back to the 2014 launch of the “Make in India” initiative by Prime Minister Narendra Modi. This was followed by the introduction of the PLI scheme in 2020 to boost domestic production and reduce dependency on imports. The smartphone industry, particularly, has been a focal point of these initiatives. Apple, which began assembling iPhones in India in 2017, and Foxconn, which has invested significantly since 2019, have made India a key alternative to China, which previously produced 80% of global iPhones. Rising US-China trade tensions and tariffs have accelerated this shift, making India’s skilled workforce and government subsidies an appealing alternative for tech manufacturing.

Foxconn’s Greater Noida Expansion:

• Location and Scale: Foxconn is negotiating with the Uttar Pradesh government to acquire 300 acres in Greater Noida, along the Yamuna Expressway. This will be Foxconn’s first facility in North India, complementing its existing operations in Tamil Nadu, Karnataka, and Telangana. The facility is expected to focus on mobile phone manufacturing, including iPhones, and could create around 40,000 jobs.
• Infrastructure Advantage: The site’s proximity to Jewar airport and key expressways in the National Capital Region (NCR) enhances logistics and export capabilities, positioning the facility for success.
• Strategic Drivers:
  • Global Supply Chain Shift: Due to US tariffs and rising competition from China, Foxconn is expanding operations beyond China, Taiwan, and Vietnam to capitalize on India’s lower labor costs and growing supplier base.
  • Apple’s Push into India: Apple aims to produce 25% of global iPhones in India by 2025, up from 12–16% in 2024, reducing reliance on China.
  • Government Support: India’s PLI scheme offers 4–6% cashbacks on incremental sales, though it faces criticism for failing to meet its targets. In addition, recent duty cuts on 28 smartphone components have further incentivized production.

Apple’s $22 Billion iPhone Production:

• Output and Export Growth: Apple’s India production reached $22 billion in iPhones in the past year, accounting for approximately 20% of global production. Exports of iPhones surged 33% in the first half of FY2024-2025, with exports projected to exceed $10 billion by the end of the fiscal year.
• Manufacturing Network: Apple’s Indian manufacturing ecosystem includes Foxconn (Tamil Nadu, Karnataka), Pegatron (Tamil Nadu), and Tata Electronics (Karnataka). Key suppliers like Salcomp (chargers) and Corning (glass) are located in Tamil Nadu, while Foxconn’s Hyderabad plant will begin producing AirPods in April 2025.
• Local Value Addition: Apple achieves 20% local sourcing, with an increasing number of suppliers joining India’s electronics components PLI scheme.

Economic and Social Impact:

• Exports: India’s electronics exports grew by 20% year-on-year, totaling $88.85 billion by December 2024, with smartphones leading the charge. iPhones now dominate India’s smartphone exports, with the US market growing from $5.2 million five years ago to $2.88 billion in FY2025’s first five months.
• Job Creation: The Greater Noida facility could create 40,000 jobs, while existing plants are expected to generate over 50,000 additional jobs, benefiting local economies and reducing unemployment in Uttar Pradesh and beyond.
• Regional Development: Regions like Greater Noida and Chennai are becoming key electronics hubs, bolstered by critical infrastructure such as the Jewar airport and expressways, facilitating logistics and supply chain efficiency.
• Global Positioning: India is now one of the world’s top five electronics exporters, with $22 billion in iPhone production and $10 billion+ in exports.
• Social Benefits: Foxconn’s expansion plans include worker residences to address housing needs, while skill development initiatives align with the Indian government’s vision for self-reliance.

Challenges and Risks:

• PLI Scheme Underperformance: The $23 billion PLI scheme has faced delays and bureaucratic hurdles, disbursing only $1.5 billion as of 2024. Critics argue that the scheme primarily benefits large players like Foxconn, leaving small and medium enterprises (SMEs) at a disadvantage.
• Competition with China: China remains a formidable competitor in tech manufacturing, controlling 70% of rare earth elements and advanced manufacturing. Recent disruptions in Foxconn’s supply chains highlight vulnerabilities to China’s market dominance.
• Infrastructure Gaps: Power shortages and port delays in North India may hinder the timely development of the Greater Noida facility, though efforts are underway to address these issues.
• Geopolitical Risks: US tariffs on Indian exports and India-China tensions could complicate trade relations and equipment sourcing for Foxconn and other manufacturers in India.
• Market Saturation: As domestic smartphone demand plateaus, India’s reliance on exports will become even more critical, with the US market facing volatility.

Recommendations:

• Streamline PLI Scheme: Simplify the approval process and extend benefits to SMEs to ensure wider participation and more inclusive growth. Focus on incentivizing components and semiconductors to reduce dependency on imports.
• Enhance Infrastructure: Accelerate the development of infrastructure projects such as the Jewar airport and NCR expressways to support logistics for Greater Noida. Invest in renewable energy sources to ensure stable power supply for manufacturing plants.
• Upskill Workforce: Collaborate with educational institutions like IITs and vocational training centers to train workers for high-tech assembly, particularly for Apple’s stringent standards.
• Diversify Supply Chains: Invest in the domestic processing of rare earth elements to counter China’s dominance. Incentivize Indian suppliers to manufacture key components for the tech industry.
• Strengthen Exports: Negotiate tariff exemptions with the US to tap into the $80 billion smartphone market and target other regions like the EU and ASEAN to reduce reliance on the US market.

Future Outlook:

• Foxconn’s Role: The Greater Noida facility could eventually produce 10–15 million iPhones annually by 2027, pushing India’s share of Apple’s global production to 30%. Foxconn also aims to expand into iPads, MacBooks, and AirPods, diversifying its revenue streams.
• Apple’s Growth: By 2026, Apple targets $30 billion in Indian production and $15 billion in exports, driven by new product models and 5G demand.
• India’s Position: India is expected to attract $1.5 trillion in electronics investments by 2030, potentially rivaling Vietnam as a top-three electronics exporter.
• Global Impact: India’s rise as a tech manufacturing hub will challenge China’s dominance in global supply chains, but sustained momentum will require continued investment and $100 billion in annual foreign direct investment (FDI).

Foxconn’s Greater Noida expansion and Apple’s $22 billion iPhone production are pivotal moments in India’s ascent as a tech manufacturing giant. While the PLI scheme and infrastructure development continue to face challenges, these initiatives have already resulted in significant export growth, job creation, and a stronger position on the global stage. By reforming the PLI scheme, enhancing infrastructure, and diversifying supply chains, India could surpass $50 billion in electronics exports by 2030 and position itself as a global competitor to China, benefiting millions in the process.