March 20, 2023

AirPods will quickly be made in India. (Picture: Apple)

Foxconn has acquired an order from Apple to fabricate AirPods and is about to speculate over $200 million in a brand new manufacturing facility to fabricate the product in Telangana.

Foxconn, a Taiwanese contract producer that makes 70% of iPhones, will make a good portion of Apple AirPods in India. To facilitate this, Foxconn plans to speculate $200 million to construct a brand new plant in Telangana.

Reuters reviews that Foxconn has for the primary time acquired an order from Apple that may permit it to provide AirPods, and marks a gradual shift away from dependence on China.

A supply confirmed to Reuters that Foxconn is investing greater than $200 million in its new AirPods manufacturing facility in Telangana, India. Nonetheless, the precise value of ordering AirPods stays unclear. The supply additionally mentioned that Foxconn officers debated for a number of months whether or not to provide the AirPods because of the decrease revenue margin, however finally determined to go forward with the deal as a method of solidifying their partnership with Apple.

“That means now we have a greater likelihood of getting orders for his or her new merchandise,” the supply informed Reuters.

Apple has chosen India as its manufacturing location, probably to diversify manufacturing and cut back dependence on China amid current COVID outbreaks and geopolitical tensions between Beijing and Washington. In accordance with the supply, development of the Telangana plant ought to start within the second half of this 12 months, and manufacturing of AirPods will start no sooner than the tip of 2024.

It is unclear how Foxconn’s manufacturing plan will have an effect on present AirPods suppliers together with Luxshare Precision Business and Goertek Inc., who didn’t reply this query.

Earlier this 12 months, there have been reviews that Foxconn was contemplating manufacturing iPhone elements on a 300-acre web site close to Bangalore, Karnataka. The transfer may doubtlessly create as much as 100,000 jobs in India and mark the shift of the digital part manufacturing middle from China.

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