MC EXCLUSIVE Foxconn begins production of Apple AirPods in Hyderabad for exports; to soon expand iPhone production with new Bengaluru unit: Sources

Foxconn begins production of Apple AirPods in Hyderabad for exports; to soon expand iPhone production with new Bengaluru unit: Sources

Taiwanese contract manufacturer Foxconn has commenced production of Apple AirPods at its Hyderabad facility for export, while its new, larger plant in Bengaluru is set to begin operations soon to ramp up iPhone production in India, according to sources who spoke with Moneycontrol.

This comes at a time when Apple is doubling down on India as a strategic manufacturing hub, positioning it as an alternative to China amid rising U.S.-China trade tensions and President Donald Trump’s sweeping tariffs, which exceed 100% on certain categories of Chinese goods—threatening supply chain stability and potentially driving up iPhone prices.

“Yes, Apple AirPods production at Foxconn’s new Hyderabad facility has started for export purposes. The new Bengaluru facility will also soon start operations for iPhone production and will play a key role in ramping up exports from India,” a person familiar with the matter said. “The new plant will have a peak capacity of 20 million units per annum.”

The Karnataka facility in Devanahalli, near Bengaluru, will be Foxconn’s second-largest facility outside China, being set up with an investment of $2.8 billion (Rs 25,000 crore).

Foxconn has kicked off trial production of the iPhone 17 series in India, while Tata Electronics is also involved in the trial production of components such as casings for the new lineup, sources said.

Tata Electronics’ new iPhone factory in Hosur has also begun operations and is currently assembling older-generation iPhones. “The Tata plant will begin shipments in the coming days,” another person said, adding that the plant will ramp up production in the coming months.

Tata Electronics has become Apple’s second key supplier after Foxconn, having acquired the India factories of Taiwanese contract manufacturers Pegatron and Wistron.

Apple aims to shift the production of over 60 million iPhones annually, covering all U.S. demand, to Indian factories by the end of 2026, Moneycontrol reported on April 26.

Apple, in the wake of tariff-related uncertainty, recently stepped up production in India, shipping iPhones worth $2 billion to the U.S. in March—a monthly record for both Tata and Foxconn.

The majority of the March production was handled by Foxconn, the second person said, adding that Tata Electronics’ share will increase with the opening of its new facility.

Queries sent to Apple, Foxconn and Tata Electronics didn't elicit any response.

Analysts said the ramp-up in iPhone and AirPods production from new factories will help Apple reduce its dependency on China.

“These are logical and necessary steps to scale up production in India with a medium-term goal of reducing dependency on China—especially given the high tariffs on Chinese products going into the U.S. With increased production levels leading to higher exports from India, Apple can meet demand for the U.S., its largest market,” Navkendar Singh, associate vice president at IDC India, told Moneycontrol.

Singh added that it is easier to expand existing production lines than to set up entirely new ones in other countries. India has already demonstrated both the capability and willingness to be a reliable long-term export hub for electronics.

Apple manufactured about 40–45 million iPhones annually in India, roughly 18–20% of its global output in2024, serving both local and export markets, according to IDC. Analysts expect this share to rise to 25–30% by 2025.