In a Monday market filing, the Taiwan-based business disclosed that it had invested through its Singaporean subsidiary.
As production moves away from China, Hon Hai Precision Industry Co., the primary producer of Apple Inc.’s iPhones, will invest $1.5 billion in its India division.
In a Monday market filing, the Taiwan-based business disclosed that the investment was made via its Singaporean subsidiary.
An email request for comment was not immediately answered by Hon Hai, which is expanding its production capacity and constructing new plants in southern India.
By the end of next year, Apple plans to import the majority of its iPhones from India, angering US President Donald Trump, who last week claimed to have ordered Apple CEO Tim Cook to cease construction of plants in India.
Trump’s remarks hasten a move away from China in order to reduce the risks associated with tariffs and geopolitical unrest. Although it has committed to spending $500 billion locally over the next four years and hiring more workers domestically, Apple does not produce smartphones in the US and produces the majority of its iPhones in China.
In order to reduce geopolitical risks like the effects of additional tariffs, Hon Hai is also boosting its investments in the US.
The Hon Hai facility in southern India assembles the majority of iPhones manufactured in India. Another important supplier is the electronics manufacturing division of the Tata Group, which acquired the local Wistron Corp. company and currently manages Pegatron Corp.’s operations in India.
In the 12 months ending in March, Apple produced $22 billion worth of iPhones in India, an almost 60% increase over the previous year.
