Apple (NASDAQ:AAPL), along with its suppliers, is seeking to manufacture over 50 million iPhones annually in India within the next two to three years, as reported by the Wall Street Journal today.

This plan aims to position India as the source for a quarter of the global iPhone production by the end of the decade, signaling a significant shift in Apple’s supply chain strategy.

Despite challenges such as infrastructure issues and restrictive labor rules, Apple has been gradually increasing its reliance on India, diversifying its manufacturing beyond China.

Leading the expansion is Taiwan-based Foxconn, one of Apple’s key suppliers. The success of Apple’s initial foray into India has set the stage for this substantial expansion, the report noted.

This move aligns with a broader trend among companies seeking to reduce dependence on China for their supply chains. Apple’s efforts to diversify its manufacturing footprint are part of a strategy that includes Southeast Asia and South Asia.

In addition to its iPhone production plans, Apple is collaborating with China’s BYD to allocate product development resources for the iPad to Vietnam, the Nikkei reported.

The engineering verification for the iPad model is expected to begin around mid-February, with the product set to be available in the second half of the coming year.

This move further demonstrates Apple’s commitment to diversifying its supply chain and reducing reliance on any single manufacturing location.