Foxconn, the Taiwanese contract manufacturer, has been awarded a contract to produce Apple's AirPods, with plans to construct a new facility in India dedicated to wireless headphone production.
Foxconn is reportedly planning to invest more than $200 million in the new AirPod manufacturing site in the southern Indian state of Telangana.
Foxconn, which is responsible for producing around 70% of all iPhones, will now also become a supplier of AirPods, This transaction exemplifies Foxconn's efforts to diversify its manufacturing away from China. A number of Chinese manufacturers currently manufacture AirPods.
With the device's relatively modest profit margins, Foxconn managers have been debating whether or not to produce AirPods for months. They eventually decided to go forward with the contract as a way of "strengthening engagement" with Apple.
Foxconn competes with Taiwanese rivals like Wistron Corp and Pegatron Inc to earn additional orders from Apple.
Apple to Samsung: Over 20 companies to invest big in India as part of manufacturing shift from China
'Technical error': Foxconn apologises after protests over pay, work culture at China iPhone facility
Foxconn Interconnect Technologies Ltd., intends to commence 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 latest.
This decision by Foxconn is considered a positive step towards the Indian government's goal of increasing local manufacturing and creating employment in the nation.
It is worth mentioning that neither Foxconn nor Apple has officially acknowledged this report as of yet. If true, it might signal a shift in the global supply chain and more investments in India by other technology firms.