Foxconn's $1.5 Billion Chennai Plant to Create 14,000 Jobs Despite Trump's Tariff Threats

Foxconn's $1.5 billion investment in a new Chennai plant aims to create 14,000 jobs and enhance India's role in global electronics manufacturing. This move comes amid President Trump's tariff threats on iPhones not produced in the U.S., which could impact Apple's pricing strategy.

The Chennai facility will focus on assembling the display module, a crucial component for iPhones, as Apple seeks to increase its production in India. In 2024, India's share of global iPhone production reached 18 percent and is projected to rise to 32 percent by 2025, according to market research firm Counterpoint.

Despite Trump's insistence that Apple should manufacture iPhones domestically, the company is positioning India as a key alternative manufacturing base. Apple aims to produce 25 percent of its global iPhones in India soon, with plans to make all 60 million iPhones sold annually in the U.S. in India by the end of next year.

Industry experts warn that if iPhones are manufactured in the U.S., costs could soar to $3,000 per device, compared to the current average of $1,000. This situation highlights the ongoing tension between U.S. trade policies and global manufacturing strategies.

Foxconn's investment is part of a broader strategy to shift manufacturing from China to India, aligning with the 'China Plus One' approach that many companies are adopting in response to geopolitical uncertainties.

Foxconn's $1.5 billion investment in a new Chennai plant is set to create 14,000 jobs, bolstering India's electronics sector despite President Trump's threats of tariffs on iPhones not made in the U.S. The facility will focus on assembling key iPhone components.