Foxconn, the world’s largest contract electronics maker and assembler of 70% of all iPhone models, will invest $500 million to establish manufacturing plants in the southern Indian state of Telangana. The investment will generate 25,000 jobs in the first phase, according to the state’s IT minister, K.T. Rama Rao. The move comes as Apple shifts production away from China and seeks to avoid disruptions due to tensions between Beijing and Washington.

Foxconn Diversifies Production

In March, Reuters reported that Foxconn had won an order from Apple to manufacture AirPods, and planned to build a factory in India to produce the products. AirPods are currently made by various Chinese suppliers, and with the deal, Foxconn will become an AirPods supplier for the first time. The move underlines Foxconn’s efforts to diversify production away from China and attract automakers to its contract manufacturing business.

Foxconn Receives Approval for Investment in Karnataka

Foxconn has also received approval from the Karnataka government for a $968 million investment in the state. In March, the company announced plans to increase investment outside of China, after reporting weaker demand for consumer electronics. However, its revenue in April fell 11.77% year-on-year due to weakness in smart consumer electronics, and Foxconn expects business to drop this quarter. Its revenue last month reached T$429.2 billion, in line with the company’s expectations.

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