Foxconn To Invest Over $200 Million In New India AirPod Plant In Telangana: Report

Taiwanese contract manufacturer Foxconn has won an order to make AirPods for Apple Inc and plans to build a factory in India to produce the wireless earphones, two people with direct knowledge of the matter told Reuters.

The deal will see Foxconn, the world's largest contract electronics maker and assembler of around 70% of all iPhones, become an AirPod supplier for the first time and underlines efforts by the key Apple supplier to further diversify production away from China. AirPods are currently made by a range of Chinese suppliers, stated the Reuters report.

One source said Foxconn will invest more than $200 million in the new India AirPod plant in Telangana. It wasn't immediately clear how much the AirPod order would be worth, added the Reuters report.

The person, who requested anonymity as the matter was not public yet, said Foxconn officials had debated internally for months about whether to assemble AirPods due to relatively lower profit margins on making the device, but ultimately opted to go ahead with the deal to "reinforce engagement" with Apple.

"That way, we are more likely to get orders for their new products," the person said.

The decision to set up production in India was requested by Apple, according to the source.