As it ramps up production of Apple AirPods, Foxconn Interconnect Technology (FIT), Hyderabad, a fully owned subsidiary of Taiwanese contract maker Foxconn, plans to increase its workforce and production lines over the course of the next six to eight months, as reported by ET.
In April, the Kongara Kalan factory started producing AirPods on a commercial basis. As Foxconn expands its business outside of China, it is moving machinery out of its plants in Vietnam.
In order to meet global demand, FIT plans to modernise five current production lines to create new AirPods models. According to the sources, FIT Hyderabad’s planned capacity will increase from the current projection of over 100,000 AirPods each month to 200,000.
Apple Growing its Manufacturing Nexus in India
The growth is consistent with Apple’s expanding domestic manufacturing ecosystem. In the first half of this fiscal year, Apple exported a record $10 billion worth of iPhones from India, up 75% from $5.71 billion in the same period last year, according to an October 8 ET story.
According to the ET article, the FIT plant presently employs about 2,000 people, and in the next six to eight months, that number is expected to rise to 5,000. A lack of dysprosium, a direct outcome of China’s crackdown on the export of rare earth metals, has impeded the production of Apple’s AirPods at FIT’s Telangana factory, according to an ET story from July.
When Beijing loosened export restrictions on essential minerals and rare earth metals in August, the bottleneck was lessened. The most recent models are the AirPods Pro 3, which were released in September of this year, and the AirPods 4, which were released in September of last year.
FIT’s Hyderabad Factory and its Operations
In addition to components like cables and connectors for many brands, FIT produces wearables like AirPods. The village of Kongara Kalan, located 15 km from the Hyderabad airport, is a part of a broader plan to increase the company’s production capacity and offer goods like true wireless stereo (TWS) earbuds to the Indian local market as well as the US and Europe.
With the construction of the facility, the business established a new production hub for audio devices in India. A strategic strategy to diversify electronics manufacturing and create a more robust supply chain, particularly in new priority areas, is the investment in the Hyderabad factory.
In order to serve its worldwide activities, FIT has been investing in new facilities in Vietnam for at least 16 years. Foxconn’s larger plan to diversify its supply chain and lessen its reliance on China includes the growth in Vietnam.
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