TAIPEI (Taiwan News) — Apple is considering building a test production line for a foldable iPhone in Taiwan, with mass production in India targeted for 2026, Nikkei Asia reported Thursday.
Sources familiar with the matter said the US tech giant hopes the long-awaited foldable model will lift overall iPhone shipments by 10% next year, as Apple seeks to diversify away from China amid mounting US-China tensions.
According to three people familiar with the talks, Apple has discussed using Taiwanese suppliers and engineering resources to set up a mini pilot line. The facility would fine-tune production processes before replicating them in India for large-scale manufacturing, shortening the learning curve for a smooth rollout of Apple’s first foldable iPhone.
Suppliers have scouted land in northern Taiwan for the potential pilot line, though the plan remains subject to change. One concern is Taiwan’s limited land and labor resources, which could complicate even a small-scale project. Sources said the facility might require around 1,000 operators.
Apple has told several suppliers it expects the foldable design to boost demand across its entire iPhone lineup. The company projects its next-generation models in 2026 will reach 95 million units, the highest level in years.
That would bring Apple’s total iPhone output to more than 240 million units next year, a more than 10% increase from current levels. By comparison, Apple’s production forecast for the recently launched iPhone 17 lineup is around 85 million units, with total shipments for all models expected to reach about 220 million this year.
Sources caution that Apple often inflates early production targets to hedge against risks, such as component shortages or quality issues with new devices. Still, one source said Apple should achieve at least 5% growth in 2026, with stronger gains if the foldable model is well received.
The move reflects Apple’s broader strategy of shifting product development and manufacturing away from China, with the company expanding its footprint in India.
However, Apple and its suppliers continue to face bottlenecks in the South Asian country. Equipment imports from China are tightly restricted and Chinese engineers have faced hurdles obtaining visas, slowing the transfer of expertise. Sources said Apple is trying to cultivate more local Indian suppliers while also bringing in toolmakers from Taiwan.
Industry observers say a pilot line in Taiwan could play an important role in bridging those gaps. By using Taiwan’s mature supply chain to validate processes, Apple could reduce risks when shifting to mass production in India.
