Nestled among rocky terrain and millet fields in Devanahalli, India, Foxconn’s new iPhone manufacturing plant resembles a futuristic facility from another world. The Taiwanese company, responsible for assembling the majority of the world’s iPhones, has established a sprawling complex in this emerging industrial zone.
Spread across 121 hectares, the immaculate buildings stand as a testament to an estimated $2.5 billion investment. Although still expanding, the factory is already operational and poised for further growth.
This development mirrors ambitions seen elsewhere, where leaders have urged Apple to bring manufacturing back to home soil. However, the progress in India highlights both the appeal and the significant challenges of revitalizing domestic manufacturing without sustained government support for incentives and workforce training.
Since the onset of the COVID-19 pandemic and before the recent U.S. elections, Apple has been intensifying its manufacturing investments in India. Many countries, including the United States, have sought to reduce their dependence on China’s factories, prompting Apple to diversify its production footprint.
According to industry analysts, India met approximately 18 percent of the global iPhone demand early this year, just two years after Foxconn began assembling devices there. With the Devanahalli plant expected to be fully operational by the end of 2025, Foxconn aims to assemble between 25 and 30 percent of iPhones in India.
The Devanahalli facility is the largest among several Apple manufacturing sites across India. While construction continues, including high-rise dormitories for female workers, around 8,000 employees currently operate within two factory buildings. This number is projected to increase to 40,000 in the near future.
The impact on the local region is profound, creating significant opportunities for job seekers and landowners alike. A network of small businesses supplying Foxconn with components, assembly line equipment, and labor recruitment services is taking shape, reminiscent of the supply chains supporting Apple’s factory cities in China.
These suppliers include Indian companies as well as firms from Taiwan, South Korea, and the United States. Some were already established locally, while others have entered India for the first time.
Foxconn’s influence is spreading through Bengaluru, a city of eight million with roots in aerospace manufacturing. While the city’s industrial base had previously shifted towards call centers, microchip design, and professional services outsourcing, the revival of factory work in Devanahalli reflects a manufacturing resurgence that some political leaders desire for other regions.
Observing these local changes illustrates why manufacturing is regaining appeal. Wages at Foxconn’s plant have increased between 10 and 15 percent. Nearby companies are quietly finalizing contracts to supply Foxconn and other Apple contractors.
For instance, a factory producing plastic parts for ATMs recently welcomed a Foxconn team for a site visit, while a foundry specializing in textile machinery expects to soon manufacture metal components for Foxconn’s facility.
Neither Foxconn nor Apple provided comments regarding their operations in India.
India has long pursued industrial breakthroughs. Its first prime minister, Jawaharlal Nehru, famously regarded hydroelectric dams, steel plants, and research institutes as the "temples of modern India." In 2015, Prime Minister Narendra Modi launched the "Make in India" initiative. Since 2020, the government has allocated $26 billion in subsidies to support strategic manufacturing goals.
A primary driver for India’s industrial push is the urgent need to create jobs. Unlike the United States, India lacks sufficient employment across sectors, with nearly half its workforce engaged in agriculture. As the population approaches its peak, India needs approximately 10 million new jobs annually to sustain growth.
Additionally, India aims to achieve financial strength and technological self-reliance akin to what China attained by becoming the world’s factory.
One challenge is that India’s electronics factories continue to import many of the most valuable components used in a finished iPhone, such as chips and camera modules. Critics often dismiss India’s success in final assembly as merely "screwdriver work," pointing out that little of the device’s value is created locally.
However, government incentives are encouraging companies like Apple to increase sourcing of parts domestically. India already supplies casings, specialized glass, and coatings. The government mandates that by 2028, 30 percent of the value of Apple products sold in India must be locally sourced. Apple opened its first Indian retail stores two years ago.
Indo-MIM, an Indian company led by a U.S.-born executive, is among the manufacturers contributing to and benefiting from the growing Apple production ecosystem. Located near Devanahalli in Karnataka state, Indo-MIM specializes in metal injection molding for a global clientele, producing parts for aircraft, luxury goods, medical devices, and more.
The company already produces templates and supports used at Foxconn’s plant. Having a critical mass of specialized suppliers nearby means Indo-MIM no longer needs to manufacture many of its own tools, according to CEO Krishna Chivukula.
"You don’t want to have to make everything yourself," Chivukula explained, emphasizing that this allows Indo-MIM to focus on its core expertise.
He noted that the local workforce makes Devanahalli fertile ground for factories. "People here are very hungry," he said. "They seek opportunities, and millions are engineers."
Despite this engineering surplus, companies continue to recruit talent from East Asia. An industry analyst noted that it took 15 years to determine what works in China and five years to replicate much of that in India.
Centum, an Indian-origin contract manufacturer similar to Foxconn, produces circuit boards for products ranging from air-to-air missiles to forklifts and fertility scanners. Its CEO revealed ongoing discussions to customize Foxconn’s factory testing equipment.
An influx of newly hired engineers and professionals is transforming the area. Many relocate hundreds of kilometers, while others commute long hours. Some start shifts as early as 3:30 a.m. to reach 8 a.m. work times.
Yet, just a five-minute walk away, the village of Doddagollahalli remains unchanged. Traditional homes cluster around a sacred grove, inhabited by farming families growing millet, grapes, and vegetables.
Some villagers rent rooms to Foxconn workers, while others try to sell their land. Sneha, who uses only one name, secured a daytime job at Foxconn despite having a master’s degree in mathematics. She enjoys the convenience of walking home for lunch each day, with a company lanyard around her neck.
Individuals like Sneha and thousands of new coworkers in this historic region are the foundation of Foxconn’s ambitions in India. While efforts in the U.S. focus on revitalizing declining factory towns, a shortage of qualified young graduates remains a challenge.
Josh Foulger, head of the electronics division at Zetwerk—a smaller Indian contract manufacturer with factories in Devanahalli—has hired many motivated Indian workers like Sneha. He receives around 700 annual job applications from local technical schools, underscoring the scale of available talent. He noted that Karnataka’s population is roughly half that of Vietnam.
"All Indian states are eager to attract factories," Foulger said. Having grown up in southern India and lived in Texas before returning to India for Foxconn, he emphasized that manufacturing creates jobs for engineers, managers, and workers at all levels. "The manufacturing industry plays a very democratic role in providing quality employment," he concluded.
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