Apple supplier Foxconn has won an order to make AirPods for the first time and will build a $200 million factory in India to produce the wireless earbuds. The move comes as Apple continues to work to move its production lines away from China, says a report by Reuters.
Apple’s AirPods have until now been exclusively manufactured by various suppliers in China since they were first released in 2016.
According to the report’s sources, Foxconn’s new $200 million AirPods assembly plant will be located in the southern Indian state of Telangana. Facility construction is expected to begin in the second half of this year, with production kicking off by the end of 2024 at the earliest.
Foxconn executive reportedly conducted a lengthy debate about whether or not to take on AirPods assembly, due to the item’s low profit margins. The Foxconn team ultimately decided to go ahead with the deal, to solidify the company’s relationship with Apple.
Apple is said to have asked Foxconn to set up AirPods production in India. In addition to the Telangana production facility, Foxconn is said to be readying to increase its investment in India to shore up its smartphone, EV, and semiconductor production.