Foxconn invests $500 million to build new AirPods factory

According to AppleInsider , in March, Foxconn reportedly received an order for AirPods from Apple and planned to manufacture them in India in a new $200 million factory.

Now, KT Rama Rao, IT Minister of Telangana (India), has tweeted that the groundbreaking of this Foxconn factory has taken place in Kongar Kalaan. More importantly, KT Rama Rao announced that this investment has increased to $500 million, and also said that the factory will create about 25,000 jobs in the first phase.

Foxconn continues efforts to gradually move out of China

Foxconn has yet to comment on KT Rama Rao’s announcement, but analysts have previously suggested that Foxconn was hesitant to take the AirPods order because company officials were concerned about the AirPods’ low profit margins compared to other products Foxconn assembles for Apple. Sources in the earlier report indicated that the decision to accept the order was intended to “reinforce the Taiwanese company’s commitment” to Apple.

Foxconn has purchased a large plot of land in Devanahalli, near the tech hub of Bengaluru, for about $37 million, a source said on May 9. The company was previously said to be planning to invest $700 million in a factory in Bengaluru to improve iPhone component production and create about 100,000 jobs.

In addition to India, Foxconn also considers Vietnam as one of the priority countries in its goal of reducing its dependence on manufacturing in China. A recent source said that Foxconn is looking for a location for its factory in Nghe An province. Previously, in February 2023, the company also signed a land lease contract with Saigon - Bac Giang Industrial Park Joint Stock Company.

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