Foxconn, a Taiwanese manufacturer recently signed an agreement with the Telangana government to establish a manufacturing plant, has been selected by Apple to produce AirPods and plans to build a factory in Telangana to manufacture the wireless earphones. According to a Reuters report, the move is part of Foxconn's effort to diversify its production away from China, where it assembles around 70% of all iPhones. The company will invest more than $200 million in the AirPods plant in Telangana, as confirmed by Reuters. Earlier this month, Foxconn signed an MoU with the Telangana government to establish a manufacturing facility expected to generate direct and indirect employment for one lakh youth in the state over a 10-year period. Foxconn officials debated internally for months about whether to produce AirPods due to lower profit margins but ultimately decided to proceed to reinforce engagement with Apple.
The decision to establish production in India was requested by Apple, and Foxconn Interconnect Technology Ltd, a subsidiary, plans to begin constructing a manufacturing facility in Telangana in the second half of 2023 and start production by the end of 2024. Reports earlier indicated that Apple had asked several suppliers, including Foxconn, to produce AirPods in India, but details such as the investment amount, timeline, and which suppliers have manufacturing plans were not disclosed. Apple and its key suppliers have been relocating production away from China to avoid potential business impacts resulting from Sino-US trade friction, the report said, citing Foxconn's statement on Wednesday that it plans to ramp up investment outside China to meet customer demand and reduce its reliance on China for production. Foxconn is already manufacturing Apple's flagship iPhone 14 and other models at its plant in Sriperumbudur, near Chennai.
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