Apple’s Foxconn ramps up India investment with massive iPhone campus near Bengaluru

Apple’s key manufacturing partner, Foxconn, is deepening its footprint in India with a sprawling new 300-acre production campus near Bengaluru. The site, located in Devanahalli, Karnataka—just 34 km from Kempegowda International Airport—is a pivotal step in Apple’s supply chain diversification away from China. Valued at $2.56 billion, the investment underscores Apple’s long-term commitment to scaling iPhone production in India, particularly for the US market.

Construction at the site is in full swing, with dormitories nearing completion to house up to 30,000 factory workers. These accommodations—specifically designated for the shop floor workforce—mirror Foxconn’s integrated model in China, where residential infrastructure is seen as essential to smooth operations. Female workers, who are expected to make up between 50% and 80% of the workforce, will receive housing priority, according to people familiar with the development.

The facility is expected to start rolling out around 100,000 iPhones by December this year. Foxconn has earmarked ₹3,000 crore for the first phase of development in 2023–24, with an equivalent amount planned for the second phase between 2026 and 2027.

A strategic shift in global manufacturing

Despite political noise—such as former US President Donald Trump’s remark discouraging Apple from building in India—Apple is pushing forward. CEO Tim Cook recently stated that a majority of iPhones sold in the US during the June quarter will be made in India. This marks a significant pivot in Apple’s production strategy, and reflects the broader trend of companies re-evaluating their dependence on Chinese manufacturing.

Foxconn’s Devanahalli plant forms a crucial part of this strategy, known internally as “Project Elephant.” The move is designed to de-risk global operations and respond to geopolitical shifts that have challenged the long-standing China-centric manufacturing model.

In parallel, Tata Electronics has been expanding its role in Apple’s supply chain. Tata has taken over local operations of Apple suppliers Wistron and Pegatron, solidifying its position alongside Foxconn as one of the major iPhone producers in India.

Already, some iPhone models have entered assembly at the Karnataka site, with additional variants scheduled to follow in August. With the anticipated launch of the iPhone 17 in September, Foxconn is racing to ensure both manufacturing capacity and worker accommodations are ready.

The company’s footprint in India is growing rapidly. In addition to Karnataka, Foxconn operates significant facilities in Tamil Nadu and Telangana. A new AirPods plant in Hyderabad further broadens its role in Apple’s India strategy.

Summary:

Foxconn’s $2.56 billion iPhone campus in Karnataka marks a milestone in Apple’s pivot toward India-centric manufacturing. With plans to produce 100,000 units by year-end and house 30,000 workers, the Devanahalli facility reflects growing efforts to localize production, reduce China exposure, and meet rising global demand from a more diversified base.

FAQs: Foxconn’s iPhone Campus in India

1. Why is Foxconn building a new iPhone manufacturing facility in India?

Foxconn’s new facility in Karnataka is part of Apple’s strategy to reduce reliance on China amid geopolitical tensions and supply chain vulnerabilities. India offers a growing manufacturing ecosystem, government incentives, and strategic proximity to key global markets.

2. What is the scale of the investment in the Devanahalli campus?

The project represents a $2.56 billion (approx. ₹21,000 crore) investment. Phase 1 (2023–24) includes ₹3,000 crore in capital, with a similar outlay planned for Phase 2 by 2026–27.

3. How many workers will the campus accommodate?

The facility is designed to house up to 30,000 factory workers, making it the largest worker accommodation of its kind in India. Priority housing is being given to female employees, who are expected to make up a majority of the workforce.

4. When will production at the Devanahalli plant begin?

iPhone assembly has already begun in phases, with initial production starting in May. The target is to manufacture around 100,000 iPhones by December 2025.

5. How does this facility fit into Apple’s broader India strategy?

The Devanahalli campus is part of a broader shift by Apple to increase Indian production. Alongside Foxconn, Tata Electronics has acquired the local operations of Wistron and Pegatron, further strengthening Apple's supply chain in India.

6. What types of Apple products will be made at this facility?

While the focus is currently on iPhone models, Foxconn’s broader India operations include manufacturing AirPods at a new plant in Hyderabad, suggesting possible future expansion into other product categories.

7. How will this affect Apple’s global supply chain?

This move helps Apple mitigate risks tied to China by diversifying production locations, ensuring more resilient supply lines, especially for the US and European markets.

8. Where exactly is the campus located?

The 300-acre site is located in Devanahalli taluk, between the villages of Doddagollahalli and Chapparadahalli, approximately 34 km from Bengaluru’s international airport.

9. What economic impact could this project have on the region?

The project is expected to generate thousands of direct and indirect jobs, boost local infrastructure, and attract further investment in Karnataka’s electronics manufacturing sector.

10. Is this Foxconn’s only facility in India?

No. Foxconn already operates major facilities in Tamil Nadu, including the Sriperumbudur plant, and is expanding into Telangana and Hyderabad with new projects.