Apple has decided to double its AirPods production in India as part of its strategy to diversify its supply chain. Its supplier, Foxconn, is rapidly increasing the monthly production capacity of its Hyderabad, India, facility.

AirPods Production Increases

Foxconn’s Hyderabad, India, facility currently has a target monthly production capacity of 100,000 units. According to a new report, Foxconn is revamping five existing production lines to increase this capacity to 200,000 units. This revamp will also increase the number of employees at the facility from 2,000 to approximately 5,000.

Operated by Foxconn Interconnect Technology (FIT), the facility is revamping five production lines to produce new models, including the recently released AirPods Pro 3. This revamp is part of Apple’s efforts to strengthen its supply chain for AirPods 4, AirPods Pro 2, and other audio devices.

Production slowed earlier this year due to a shortage of dysprosium, a rare earth element used in AirPods components. However, this bottleneck eased in August after China eased export restrictions. Apple’s supplier base in India is rapidly expanding; currently, 45 local companies contribute to iPhone and accessory production.

This expansion of FIT in the Kongara Kalan area of ​​Hyderabad is part of a larger $550 million project announced in 2023. This project is expected to create up to 24,000 jobs and establish the area as an audio production hub. The facility aims to support both domestic demand in India and export markets in the US and Europe with its products.

Apple is shifting its manufacturing focus from China to countries like India, Vietnam, Malaysia, and Thailand, while also expanding its manufacturing and operations in the United States. In August, the company committed to investing $600 billion in its US operations over four years. It also announced a program to move production of all protective glass for the iPhone and Apple Watch to the US.