Foxconn, which manufactures equipment for iPhone maker Apple on a contract basis, is planning to set up an AirPods manufacturing factory in India. AirPods are Apple's wireless earbuds. Reuters repor

The world's largest iPhone maker

70 percent of Apple's iPhone manufacturing is done by Hon Hai Precision Industry Co. Ltd., a Taiwanese company known as Foxconn. The company already has an iPhone manufacturing factory in India. According to the report, this is Foxconn's first foray into manufacturing AirPods and the move to set up a factory in India is part of Apple's effort to phase

New plant in Telangana

Reuters has received information that Foxconn is going to invest 20 million dollars and start a factory in Telangana for the new AirPods plant. At the same time, it is not clear how much of the $100,000 AirPods order Foxconn received from Apple. Foxconn won't make much profit if they make AirPods. According to the report, the decision was reached after months of discussions within the company whether to accept Apple's order. The company decided to go ahead with the move to build the factory when the argument that the new move would help to strengthen the relationship with Apple gained the upper hand in the discussions despite the low profit. In that way, it was argued that they could be motivated to get orders to manufacture new Apple products.

Apple said enough is enough in India

According to the report, it was Apple who suggested that the new factory should be set up in India rather than in China. To win orders from Apple, Foxconn is competing with Taiwan-based companies Pegatron and Wistron to manufacture the iPhone. Apple is the most valuable company in the world. Foxconn Interconnect Technology Ltd., a subsidiary, will set up the factory in India. Its work may start in the second quarter of this year. If we want to start the production of AirPods here, it may be at least the end of 2024.

Foxconn stock price soared

At the same time, the company's stock price jumped 9 percent after learning that Foxconn had received an order to manufacture AirPods. Neither Apple nor Foxconn have yet to comment on Reuters' report. The Chinese company Luxshare Precision Industry is the most important manufacturer of AirPods for Apple. It is also unclear whether Foxconn will reduce their order. Anyway, it is noteworthy that Apple's new move is in the context of US-China tension.