Foxconn, Apple's largest contract manufacturer, plans to invest $500M in new manufacturing plants in India, according to a state IT minister.
K.T. Rama Rao on Sunday announced the groundbreaking of the first plant in India's southern Telangana state.
- The facility will produce Apple products, primarily AirPods, as part of Apple's effort to diversify its production away from China.
- The $500M investment, up from an initial $200M, is expected to create 25,000 jobs in its first phase.
- In March, Apple awarded Foxconn a substantial manufacturing contract for AirPods.
- Production at the plant is expected to start in late 2024 or later.
- Foxconn currently assembles 70% of all iPhones. While the Taiwanese manufacturer was hesitant about taking on AirPods, it ultimately decided to move forward in order to "reinforce engagement" with Apple.
- In March, Foxconn gained approval to invest $968M in India’s state of Karnataka.
- Meanwhile, Apple wants to expand its iPhone production capacity in India to account for 25% of all iPhones by 2025.