Foxconn to make 'new component' for iPhones in India that has so far been Tata Electronics' 'exclusive' locally: What makes it important after Trump's 25% Tariff threat

Foxconn is gearing up to manufacture iPhone metal casings in India, ending Tata Electronics' monopoly on local production. This move aligns with Apple's strategy to diversify its supply chain amid geopolitical tensions and potential tariffs. While the immediate impact is limited, it signifies Apple's commitment to building a comprehensive manufacturing ecosystem in India.
Apple
supplier Foxconn is preparing to produce
iPhone
metal casings in India for the first time, breaking
Tata Electronics
' exclusive hold on this component manufacturing locally. The move comes as Apple deepens its Indian operations amid President
Trump
's recent threat of 25% tariffs on iPhones not manufactured in the United States.
According to The Economic Times, Foxconn is establishing a dedicated unit at ESR Industrial Park in Oragadam, Tamil Nadu, specifically for iPhone enclosure production. Until now, the company's Indian operations focused primarily on iPhone assembly at its Sriperumbudur facility, along with AirPods assembly in Hyderabad.
Strategic diversification amid geopolitical tensions
The timing appears significant following Trump's Truth Social warning to
Apple CEO Tim Cook
, demanding iPhone production move to America or face substantial tariffs. "I have long ago informed
Tim Cook
of Apple that I expect their iPhone's that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else," Trump posted.
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Despite the political pressure, Apple continues expanding its Indian manufacturing footprint. The enclosure production represents part of Apple's broader supply chain diversification strategy, reducing dependence on any single region or supplier.
Limited immediate impact but long-term significance
While iPhone casings constitute only 2-3% of the device's total bill of materials, industry analysts view this as strategically important. Neil Shah from Counterpoint Research noted in ET's report that even with enclosure production, Foxconn's total India-based value addition will likely remain below 10%.
"This aligns well with Apple's broader strategy to derisk and diversify its supply chain," Prabhu Ram from CyberMedia Research. told The Economic Times. "As India emerges as a lynchpin in Apple's growth momentum, it is a natural progression for Foxconn to expand its capabilities."
Construction on the new facility has already begun at the same industrial park housing Foxconn's upcoming display module assembly plant. The development signals Apple's commitment to building an end-to-end manufacturing ecosystem in India, regardless of Washington's demands for American production.
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