In preparation for this increase, Foxconn has been conducting limited production trials in India, focusing on maintaining quality as output rises.

Successful trial runs are crucial for transitioning to the revenue build phase, ensuring that products are ready for shipping to meet these production targets.

In addition to its smartphone ambitions, Foxconn is also reviving its semiconductor initiatives with a $37.2 million investment to establish a chip packaging and testing facility in collaboration with HCL Group.

The Indian government has been actively encouraging foreign investment in the electronics sector, offering various incentives to manufacturers like Foxconn.

To further support these initiatives, the government is providing tax incentives for imported components under the Made in India program, particularly amidst concerns over Chinese interference in Apple's plans.

As part of its efforts to boost local manufacturing, the Indian government is proposing nearly $3 billion in subsidies specifically aimed at companies like Apple.

Foxconn's operations in India are expanding beyond iPhones, with new facilities including a unit in Hyderabad dedicated to AirPods assembly, complementing its existing operations in Bengaluru and Sriperumbudur.

During a visit to India in August 2024, Foxconn chairman Young Liu emphasized the company's plans to target additional sectors such as ICT, electric vehicles, and digital health.

While Apple does not publicly disclose its production figures, market analysts have varying estimates regarding the scale of iPhone manufacturing in India.

Foxconn is set to significantly ramp up its iPhone production in India, aiming to assemble between 25 and 30 million units in 2025, a substantial increase from the 12 million units produced in 2024.

This ambitious production goal aligns with Apple's strategy to diversify its manufacturing base away from China, driven by strong demand for its products.