Apple’s mission to pick up manufacturing pace in India has gained more steam after Foxconn landed an order to make Airpods in the country.
What Happened? According to a Reuters report, the Taiwanese contract manufacturer is planning on building a new factory in Telangana to make Airpods. The world's largest contract electronics maker has reportedly earmarked a sum of more than $200 million (₹1,653 crore) for the new plant.
The report adds that Foxconn officials were initially unsure about assembling AirPods due to relatively lower profit margins on making the device. However, the company ultimately opted to go ahead with the deal to “reinforce engagement” with Apple.
The decision to set up production in India was requested by Apple, said a source close to the matter while talking to Reuters.
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Foxconn Interconnect Technology, which is a subsidiary of Foxconn, plans to start the construction of the manufacturing facility in Telangana in the second half of this year and begin production by the end of 2024 at the earliest.
Apple and Foxconn recently joined hands to lobby for labour reform legislation in Karnataka that should help the Cupertino-giant greatly improve manufacturing prospects in the country.
The legislation brings about a landmark change in allowing 12-hour shifts and night-time work for women — similar to manufacturing rules in China.
The legislation also ups the number of allowable overtime hours to 145 over a three-month period, up from 75, and caps maximum working hours at 48 per week.
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