A Hon Hai Precision (Foxconn) subsidiary was tipped to start work on a $200 million factory in India, after winning an order from Apple to produce AirPods, Reuters reported.

Foxconn Interconnect Technology will begin work on the facility in the state of Telangana in southern India in the second half of the year, with AirPods production to commence at the end of 2024 at the earliest, Reuters wrote.

Reuters stated the contract is Foxconn’s first for AirPods and comes with lower profit margins than its iPhone deals, likely an effort to win the deal.

The manufacturer started to shift some production of Apple products including its flagship smartphone from China to India in 2022, following pressure from the US vendor to diversify its supply chain.

In December 2022, Kuo Ming-Chi, an Apple analyst with TF International Securities, stated the vendor aimed to shift up to 45 per cent of iPhone production to India.