Foxconn to invest more than 200 million dollar in new AirPods factory at Telangana

Foxconn, the largest contract electronics manufacturer in the world and Apple’s largest supplier, will make AirPods for the first time. It plans to build a $200 million factory in India to make wireless earphones. Here is all you need to know. Foxconn to invest more than 200 million dollar in new AirPods factory in Telangana.

Taiwanese contract manufacturer Foxconn has secured an order from Apple to make AirPods and the company is planning to build a factory in India, where it will primarily manufacture the wireless earphones. Two people with direct knowledge of the matter confirmed.

Foxconn, the largest contract electronics manufacturer in the world and Apple’s largest supplier, will make AirPods for the first time. The move to build a factory in India for making AirPods highlights Foxconn’s intention to shift production away from China. It may be noted that AirPods are currently made by a range of Chinese suppliers.

Foxconn’s $200 million AirPod factory in India

One of the sources quoted in the Reuters report said Foxconn will invest more than $200 million towards building the new AirPod plant in the southern state of Telangana. While the size and value of the AirPod order is not yet clear, Foxconn’s move to build an entire factory dedicated primarily to production of wireless earphones indicates that the company is serious about the deal.

Initially, however, there was some hesitation among Foxconn officials. A person quoted in the news agency’s report said the company’s officials debated internally for months about whether to assemble Apple AirPods as profit margins are low.

However, they ultimately decided to go ahead with the deal to “reinforce engagement” with Apple. The person added that Foxconn’s AirPod deal could help it secure orders for Apple’s new products.

Apple requests Foxconn to make in India

It may be noted that Foxconn decided to build a factory in India and set up AirPod production after a request from Apple. Foxconn Interconnect Technology, which is a subsidiary of Foxconn, plans to start the construction of the manufacturing facility in Telangana in the second half of this year and begin production by the end of 2024 at the earliest, as per the person quoted in the Reuters report.

Analysts had said earlier that Apple asked suppliers including Foxconn to make AirPods in India. However, details such as investment size, timeline and which suppliers have manufacturing plans in the country have not yet been disclosed.

Foxconn and Apple have not yet officially commented on the matter. Apple’s request to its suppliers to move to India comes at a time when major electronics companies are trying to shift production away from China, or at least diversify operations.

This came after strict Covid-19 curbs disrupted Foxconn’s biggest iPhone factory in China last year. Foxconn said it would boost investment outside China to meet customer demand and also lower its reliance on the nation for production.

Also Read: 7th Pay Commission: Double gift for government employees