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Foxconn arm to amplify output of AirPods with line overhaul
Foxconn Interconnect Technology (FIT), Hyderabad, a wholly owned subsidiary of Taiwanese contract manufacturer Foxconn, is expanding its workforce and production lines in the next six to eight months as it scales up Apple AirPods manufacturing, people aware of the development told ET.
The plant, in Kongara Kalan, began commercial production of AirPods in April. Machinery is being shifted from its Vietnam facilities as Foxconn diversifies operations beyond China. FIT will overhaul five existing production lines to make new AirPods models, while aligning capacity with international demand. The target capacity for FIT Hyderabad will be 200,000 AirPods a month, the people said, up from more than 100,000 estimated now.
The expansion is in line with Apple's growing manufacturing ecosystem in the country.
Apple has clocked iPhone exports worth a record $10 billion from India in the first six months of this fiscal year, up 75% from $5.71 billion in the year-ago period, ET reported on October 8.
“The FIT factory currently employs around 2,000 personnel that is likely to go up to 5,000 in the next six to eight months,” said one of the persons cited.
ETtech
The total investment will be Rs 4,800 crore, another said. “More than Rs 3,000 crore has already been invested,” this person said. “This used machinery is coming from FIT's Vietnam facility. I think one or two lines will be new because they are still expanding.”
FIT and Apple did not respond to ET's queries.
In July, ET reported that production of Apple's AirPods at FIT's Telangana plant had been hampered because of a dysprosium shortage, a direct result of China's clampdown on the export of rare earth metals. The bottleneck eased in August when Beijing relaxed export curbs on rare earth metals and critical minerals. The latest models are the AirPods 4 model, launched in September last year, and the AirPods Pro 3, introduced in September this year.
The contract maker had committed to a $550-million facility in Kongara Kalan in May 2023, intended to create 24,000 jobs. The project involves Chang Yi Interconnect Technology (India) Pvt Ltd and is focused on the manufacturing of Apple accessories, with initial investments of $150 million and further approval for an additional $400 million.
FIT manufactures wearables such as AirPods besides components including connectors and cables for multiple brands. Kongara Kalan village, 15 km from Hyderabad airport, is part of a larger strategy to expand the company's production capacity and supply both to the US and Europe alongside the domestic Indian market for products like true wireless stereo (TWS) earphones.
The facility marked the establishment of a new audio device manufacturing hub for the company in India. The investment in the Hyderabad plant is a strategic move to diversify electronics manufacturing and build a more resilient supply chain, especially in new focus areas.
FIT has been operating in Vietnam for at least 16 years and continues to invest in new facilities to support its global operations. The expansion in Vietnam is part of Foxconn's broader strategy to diversify its supply chain and reduce its dependence on China.
Source: EconomicTimes
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