Foxconn Will Build A Factory In India For Making AirPods

Foxconn, a Taiwanese contract manufacturer, has received an order from Apple to manufacture AirPods, and the company plans to establish a plant in India to primarily manufacture the wireless earphones.

Two persons with close knowledge of the situation verified this to a news agency.

For the first time,  Foxconn, the world's largest contract electronics manufacturer and Apple's largest supplier, will produce AirPods.

The decision to establish a factory in India to manufacture AirPods demonstrates Foxconn's ambition to transfer production away from China. It should be mentioned that AirPods are now manufactured by a number of Chinese providers.

Foxconn's $200 million AirPod manufacturing facility in India

According to one of the individuals cited in the article, Foxconn would invest more than $200 million in the new AirPod facility in the southern state of Telangana.

While the amount and value of the AirPod order are unknown, Foxconn's decision to construct an entire plant dedicated just to the manufacture of wireless earphones suggests that the business is serious about the deal.

Yet, there was considerable hesitancy among Foxconn officials at first. According to a person featured in the news agency's article, firm managers discussed whether to produce Apple AirPods for months due to low-profit margins.

Nonetheless, they finally chose to proceed with the transaction in order to "reinforce engagement" with Apple. According to the source, Foxconn's AirPod arrangement might help it gain orders for Apple's upcoming products.

Apple has asked Foxconn to manufacture in India.

It should be remembered that Foxconn opted to establish a facility in India and start producing AirPods in response to an Apple request.

According to news, Foxconn Interconnect Technology, a subsidiary of Foxconn, expects to begin the building of the manufacturing plant in Telangana in the second half of this year and begin production by the end of 2024 at the earliest.

Experts previously stated that Apple has urged vendors such as Foxconn to manufacture AirPods in India. Nevertheless, specifics such as the quantity of the investment, the timing, and whether suppliers have production ambitions in the nation have yet to be revealed.

Foxconn and Apple have yet to issue a formal statement on the subject.

Apple's call to its suppliers to relocate to India comes at a time when big electronics firms are attempting to transfer production away from China, or at the very least diversify operations.

Last year, tight Covid-19 restrictions interrupted Foxconn's largest iPhone plant in China. Foxconn said it will increase its investment outside of China to fulfill customer demand and reduce its dependency on the country for production.

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