Apple supplier Foxconn to produce AirPods at a new plant in India as it diversifies production away from China
- Foxconn will invest more than US$200 million in the new AirPods plant in the southern Indian state of Telangana, sources told Reuters
- The deal will see Foxconn become an AirPods supplier for the first time and underlines efforts to diversify production amid US-China trade friction
The deal will see Foxconn, the world’s largest electronics contract manufacturer and assembler of around 70 per cent of all iPhones, become an AirPods supplier for the first time and underlines efforts by the key Apple supplier to further diversify production away from China. AirPods are currently made by a range of Chinese suppliers.
The person, who requested anonymity as the matter was not public yet, said Foxconn officials had debated internally for months about whether to assemble AirPods because of relatively lower profit margins on making the device, but ultimately opted to go ahead with the deal to “reinforce engagement” with Apple.
"That way, we are more likely to get orders for their new products,” the person said.
The decision to set up production in India was requested by Apple, according to the source.
Foxconn vies with Taiwanese rivals such as Wistron Corp and Pegatron Corp to win more orders from Apple, the world’s most valuable company.
A subsidiary, Foxconn Interconnect Technology, plans to start construction of a manufacturing facility in Telangana in the second half of this year and begin production by the end of 2024 at the earliest, the person said.
