Foxconn’s expansion outside of China continues.
The company has begun making an investment of $500 million into new plants in India, according to a tweet by K.T. Rama Rao, the state IT minister for Telangana. It’s thought that the plant will most likely be used in the production of AirPods for Apple.
In March, Foxconn was reported to have secured an order for AirPods from Apple and planned to make them in India in a new $200 million factory. The ground has been broken on a new plant, the first of Foxconn’s plants, located in Kongar Kalaan.
Rao continues by stating it will be a $500 million investment, up from the original $200 million leaked by sources two months prior, and will create approximately 25,000 jobs in its first phase.
Foxconn has yet to officially comment on the minister’s announcement, and it was previously suspected that the assembly partner was hesitant about taking an AirPods order. Company officials were apparently concerned about the low profit margin on AirPods compared to other items Foxconn assembles for Apple.
Sources close to the story indicated that the company may have accepted the order to “reinforce engagement” with Apple.
The breaking of new ground is the latest move by Foxconn in India. On May 9, it was reported that Foxconn had bought a 13 million-square-foot parcel of land in Devanahalli, near the tech hub of Bengaluru for approximately $37 million.
Foxconn was also reported to be planning to invest $700 million in a new plant in Bengaluru to improve iPhone part production. The facility could create around 100,000 jobs once open and operational.
Stay tuned for additional details as they become available.
Via AppleInsider and @KTRBRS