Apple is reportedly in discussions with manufacturers in Tawan to establish a pilot production facility for its first foldable iPhone, which the company aims to mass-produce by 2026 in an effort to grow slowing iPhone sales.

The initiative is part of Apple’s broader strategy to drive a projected 10% sales growth next year, according to sources in Asia using the new foldable as a key driver up against Samsung.

Nikkei Asia reports that Apple is looking to engage Taiwanese manufacturers to build the test line in Taiwan, with final assembly planned for India.

This dual-location approach reflects Apple’s intent to accelerate its shift away from China-based product development amid persistent geopolitical tensions between Washington and Beijing.

Apple’s management is said to be leveraging Taiwan’s engineering talent to construct a mini pilot line that will validate equipment and optimize production parameters for the foldable device—positioned to compete directly with Samsung’s Fold 7. If successful, the company plans to replicate the production setup in India for full-scale manufacturing.

However, Apple has expressed reservations about entrusting Indian firms with prototype production, citing their lack of experience in iPhone manufacturing.

Instead, Apple is relying on its long-standing partner Foxconn and other Taiwanese firms, whose expertise is expected to streamline the development of the foldable model.

Samsung, despite its established capabilities in foldable technology, was notably not approached to participate in the project.

Apple suppliers have reportedly identified a site in northern Taiwan for the pilot facility, which Apple is expected to finance the project.

Yet, insiders caution that Taiwan’s limited land and labor resources pose challenges, with the pilot line alone requiring approximately 1,000 operators.

Apple has informed suppliers that it anticipates the foldable iPhone will stimulate broader demand across its product lineup.

Ensuring a smooth rollout of the new form factor is seen as critical to meeting the company’s ambitious targets.

Preliminary projections suggest Apple plans to produce around 95 million iPhones in its 2026 lineup—its highest output in years and a more than 10% increase from 2025. Total production across all models is expected to exceed 240 million units next year, up from approximately 220 million in 2025.

For the newly launched iPhone 17 series, Apple initially projected 85 million units for 2025.

However, actual production volumes may be adjusted based on market response. One source noted that Apple often sets high forecasts to account for potential supply chain disruptions or quality control issues when introducing new product categories. A minimum 5% growth from this year remains achievable, the source added.

Apple’s Taiwan-India production strategy is also designed to mitigate risks stemming from strained relations between the U.S., China, and India. While Apple is investing heavily in India’s manufacturing capabilities, suppliers continue to face obstacles importing equipment from China and securing Chinese technical expertise.

“Equipment imports from China have long been a challenge in India,” said one source familiar with the matter. “Apple is working to cultivate more local suppliers and bring in new tool providers from Taiwan.”

India, meanwhile, is navigating complex diplomatic terrain. The Modi administration remains embroiled in a tariff dispute with President Donald Trump’s government, while tensions with Beijing persist despite recent talks between Modi and Chinese President Xi Jinping. Apple’s growing investment in India is seen as pivotal to bolstering the country’s tech manufacturing ecosystem amid these geopolitical headwinds.