Tech

Apple supplier Foxconn says it plans to build $200 million factory in India after winning AirPods order


Taiwanese contract manufacturer Foxconn has won an order to make AirPods for Apple and plans to build a factory in India to make the wireless headphones, the two have direct knowledge of. on the matter told Reuters.

agreement will see Foxconnthe world’s largest contract electronics assembler and manufacturer with about 70% of all iPhones, becoming one AirPods supplier for the first time and emphasizes own efforts Apple supplier to further diversify production out of China. AirPods are currently manufactured by a range of Chinese suppliers.

A source said that Foxconn will invest more than $200 million (about Rs 1,650 crore) in the new Indian AirPod factory in Telangana state, southern India. It is not clear how much the AirPods order is worth.

One person, who asked to remain anonymous because the matter has yet to be made public, said Foxconn officials had been debating internally for months over whether to assemble AirPods due to the profit margins from making similar devices. relatively low, but ultimately chose to continue the agreement to “consolidate”. committed” to Apple.

“That way, we’re more likely to get orders for their new products,” the person said.

According to the source, the decision to set up a manufacturing facility in India was at the request of Apple.

Foxconn competes with Taiwanese rivals such as Wistron And Pegatron to win more orders from Apple, the world’s most valuable company.

A subsidiary, Foxconn Interconnect Technology, plans to start building a production facility in Telangana in the second half of this year and start production as early as the end of 2024, the person said.

A second person with direct knowledge of the matter, who also declined to be identified as the matter has not yet been made public, said the Foxconn subsidiary will manufacture AirPods in India without the need to be identified. does not provide further details.

Analysts have previously said Apple has asked suppliers including Foxconn to manufacture AirPods in India, but details such as the size of the investment, timing, and which suppliers plan to manufacture in the country. This family has not been disclosed.

Foxconn declined to comment. Apple did not immediately respond to a request for comment.

Apple and its key suppliers have moved production out of China, where strict COVID-19 restrictions disrupted Foxconn’s largest iPhone factory last year. They are also looking to avoid a potential impact on business from the intensifying Sino-US trade conflict.

Foxconn on Wednesday said it would increase investment outside of China to meet customer demand and reduce its reliance on China for manufacturing.

It is not clear whether Foxconn’s production plans will have an impact on existing AirPods suppliers, including Luxshare Precision.

Luxshare did not immediately respond to Reuters’ request for comment.

Goertek, another supplier, said in November that a foreign customer had asked it to halt assembly work on a smart audio product, which analysts at the time identified as AirPods Pro 2and the suspension will reach a revenue of up to 3.3 billion yuan (about 4,000 rupees).

Goertek did not respond to a request for comment.

© Thomson Reuters 2023


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