Foxconn, based in Taiwan, has reportedly secured a contract to manufacture Apple’s AirPods and intends to establish a $200 million factory in India dedicated to producing these wireless earphones, as per insider information.

This agreement marks Foxconn’s debut as an AirPod supplier and underscores its strategic move to diversify production beyond China. Currently, various Chinese manufacturers handle AirPods production.

Sources indicate that Foxconn will inject over $200 million into the new AirPod plant in Telangana, a state in southern India. The decision to initiate production in India reportedly stems from Apple’s request.

A Foxconn subsidiary, Foxconn Interconnect Technology Ltd, aims to commence operations no earlier than the end of 2024.

In response to market demands and to reduce dependence on Chinese production, both Apple and its primary suppliers are shifting manufacturing operations away from China. Foxconn is planning increased investments outside of China to cater to customer needs while decreasing reliance on Chinese manufacturing.