[News] Apple’s Foldable iPhone Trial Still Unsettled, Taiwan’s Taoyuan Free Trade Zone Seen as Likely Site

Recently, Nikkei noted that Apple has reportedly been in talks with suppliers about establishing a test production line for the foldable iPhone in Taiwan, with plans to begin mass production in India by 2026. However, according to TechNews, industry sources state that Apple has not yet decided whether to conduct trial production in Taiwan. As highlighted by TechNews, if Apple were to set up a test line in Taiwan, industry sources believe the most possible location would be the Taoyuan Dayuan Free Trade Zone.

TechNews points out that the potential location is attractive because operations within the zone are treated as offshore, allowing goods to bypass customs. This would ease the flow of components and equipment during the testing phase and better align with Apple’s stringent requirements for efficiency and confidentiality.

In addition, TechNews, citing industry sources, adds that if trial production begins, it will likely be carried out by Foxconn’s Innovative Product Enclosure Business Group (iPEBG), which has previously handled much of Apple’s early-stage R&D and structural testing for new products.

Taiwan Pilot, India Scale: A New potential Model in Apple’s Supply Chain?

Industry sources indicate that if Apple ultimately assigns the test production line to Taiwan, it would underscore the island’s strategic role in next-generation product development. While India is Apple’s long-term production base, high-barrier products still require Taiwan’s expertise to establish SOPs. Validating production in Taiwan first would help reduce yield challenges, as noted by TechNews.

Notably, Apple has in recent years advanced its “China+1” strategy, accelerating the shift of some production to India to diversify risk. However, given the high demands of foldable devices in structure, materials, and reliability testing, TechNews highlights that ensuring skilled labor and stable yields remains a key factor in Apple’s decision on the trial production site.

If the foldable iPhone completes trial production in Taiwan and enters mass production in India, it would mark Apple’s first use of a “Taiwan validation, India scaling” model for new products. This would be a significant milestone in its global supply chain strategy, as industry sources cited in TechNews point out.

However, whether the foldable iPhone will begin trial production in Taiwan is still uncertain. TechNews points out that political and trade ties between China and India, along with effective workforce training, are key factors.

Read more

• Standardized Hinges and Apple’s Entry Expected to Push Foldable Phone Penetration Beyond 3% by 2027, Says TrendForce
• [News] Apple Reportedly Mulls Taiwan Pilot, India Mass Production for Foldable; Targets 10% Shipment Growth
• Accelerated Brand Expansion Reshapes Foldable Phone Market; Apple’s 2026 Entry May Ignite Industry Breakthrough, Says TrendForce

(Photo credit: Apple)