Foxconn has officially begun production of the upcoming iPhone 17 at its newly built $2.8 billion manufacturing facility in Devanahalli, Bengaluru. This marks a major milestone not only for Apple’s global manufacturing strategy but also for India’s ambition to become a key hub in the electronics supply chain. The development reinforces Apple’s growing reliance on India as a strong alternative to China amid shifting global trade dynamics.

Key Highlights

Foxconn begins iPhone 17 production in Bengaluru.

$2.8 billion (₹25,000 crore) invested in the Devanahalli facility.

Second-largest Foxconn unit outside China.

Apple aims to produce 60 million iPhones in India this year.

iPhone supplies in India surged 21.5% in H1 2025.

Facility to create thousands of jobs and strengthen local supply chains.

The $2.8 Billion Bengaluru Plant

The new Devanahalli facility is Foxconn’s second-largest plant outside China and has been established with an investment of nearly ₹25,000 crore. This plant strengthens Apple’s supply chain diversification efforts and plays a pivotal role in reducing dependence on China for iPhone production.

Despite facing early setbacks—such as the sudden return of hundreds of Chinese engineers that temporarily disrupted operations—Foxconn swiftly managed the challenge by bringing in skilled professionals from Taiwan and other regions to ensure smooth production.

Karnataka’s Global Manufacturing Push

Karnataka’s Minister for Commerce and Industries, M. B. Patil, welcomed the commencement of iPhone 17 production. He highlighted that the investment reflects the state’s rise as a global electronics hub, creating thousands of jobs, powering India’s export growth, and boosting investor confidence.

Patil emphasized that Bengaluru’s role in Apple’s production strategy positions India as a future “iPhone capital of the world.”

Apple’s Expanding India Strategy

Apple has rapidly accelerated its manufacturing in India. For FY2024–25, Apple assembled 60% more iPhones in the country compared to the previous year, valued at around USD 22 billion. The company now aims to produce 60 million iPhones in India this year, a sharp increase from 35–40 million previously.

Tim Cook, Apple’s CEO, highlighted India’s strategic importance in the company’s global supply chain during Apple’s Q2 2025 earnings call. He confirmed that a majority of iPhones sold in the U.S. during the June quarter originated from India, cementing the country’s position as a central hub in Apple’s global expansion.

Strong iPhone Sales in India

Apple’s performance in the Indian market continues to strengthen. iPhone shipments rose by 21.5% year-on-year in the first half of 2025, reaching 5.9 million units. The iPhone 16 was the most shipped model during this period, contributing to Apple’s 7.5% share of the Indian smartphone market in Q2 2025, according to IDC data.

Impact and Future Outlook

Foxconn’s new Bengaluru facility is expected to significantly contribute to India’s electronics export ecosystem. By ramping up production, Apple is not only securing a stable supply chain but also helping India advance its “Make in India” initiative. The expansion is likely to attract more investments, generate employment, and strengthen India’s position as a global tech manufacturing powerhouse.

Conclusion

The commencement of iPhone 17 production at Foxconn’s $2.8 billion Bengaluru facility is a landmark step in Apple’s India journey. Despite initial challenges, operations are now on track, signaling Apple’s deep commitment to India as a manufacturing and export hub. With Apple aiming to produce 60 million units in 2025 and India’s smartphone market share steadily rising, Bengaluru is set to play a defining role in Apple’s global growth story.

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