Apple supplier Foxconn has announced it will invest $500m in manufacturing plants in the Indian state of Telangana, demonstrating Apple’s efforts to diversify its global supply chain away from China.

The new factory will create 25,000 direct jobs in the first phase, according to a tweet from Telangana’s IT minister, K.T Rama Rao. 

Foxconn’s announcement comes just weeks after the company said it had not entered any “binding, definitive agreements for new investments” during CEO Young Liu’s two-month visit to India.

Taiwan-based Foxconn, which reportedly produces over 70% of the world’s iPhones, won a bid to manufacture AirPods in India earlier this year. The company already manufactures iPhones in the country. 

Apple has been looking to move its production out of China as tensions with the US continue to intensify. The iPhone maker has also dealt with supply chain disruption due to previous Covid-19 restrictions in the country. 

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By GlobalData

Foxconn is the world’s largest contract manufacturer. In addition to making Apple products, the company creates network and telecom products for ZTE in India, as well as products for Boat. 

Foxconn first entered India in 2006 to make handsets for Finnish-based phone maker Nokia. 

Speaking on a recent earnings call, Chairman of Foxconn Young Liu said: “India has now reached a population of 1.4 billion people, translating to a large potential market for mid-to-high-end products which our clients are focusing on. 

“Hence, it is necessary for us to continue to expand assembly and component operations in India.”

GlobalData is the parent company of Verdict and its sister publications.