Apple supplier Foxconn will invest $1.5 billion in its Indian unit, further solidifying the iPhone maker’s pivot away from China-based manufacturing amid ongoing tariff tensions.

According to a filing on the London Stock Exchange, Foxconn’s Singapore-based subsidiary will purchase 12.77 billion shares at ₹10 each in Yuzhan Technology India, its unit located in Tamil Nadu. The subsidiary handles both electronic component production and iPhone assembly for Apple.

The move aligns with Apple’s broader strategy to diversify its supply chain and reduce dependency on China, following increased US tariffs under former President Donald Trump’s administration. Supply chain concerns and potential price hikes for iPhones have driven Apple to expand operations in alternative markets.

In March, Apple significantly ramped up production in India, according to Reuters, exporting approximately 600 tons of iPhones worth $2 billion to the United States.

The latest investment marks one of Foxconn’s largest commitments to India and underscores the country’s growing importance in Apple’s global manufacturing ecosystem.