Apple supplier Jabil is setting up a second factory in Tamil Nadu to expand local AirPods component production, as Apple strengthens its manufacturing base in India.
Just days after announcing a major push to increase iPhone exports from India, Apple is now planning to ramp up AirPods production as well. According to a report by The Economic Times, Apple supplier Jabil is preparing to open a second manufacturing facility in Tiruchirappalli, Tamil Nadu, aimed at increasing the local assembly of AirPods components.
Jabil, a US-based contract manufacturer, already produces AirPods plastic enclosures at its Pune facility. The new plant in Tamil Nadu will support Apple’s efforts to scale up production further, with final plans expected to be confirmed by June or July. These plastic enclosures are then shipped to China and Vietnam, where the final assembly of AirPods takes place.
This move aligns with Apple’s strategy to diversify its supply chain away from China amid ongoing US-China trade tensions. In a recent earnings call, Apple CEO Tim Cook acknowledged that tariffs on Chinese-made iPhones bound for the US could cost the company an additional $900 million. Apple is now working to reduce that impact by increasing production in markets like India and Vietnam.
Apple has already begun manufacturing iPhones in India for export to the US and is expected to increase this output further in the June quarter. According to Cook, the majority of iPhones sold in the US during that period will likely be assembled in India. While Vietnam will handle production of devices such as the iPad, Mac, Apple Watch, and AirPods, India is taking the lead for iPhones and now AirPods components.
Jabil began producing AirPods components in India in 2023 and has since been shipping them to China and Vietnam. The company’s two Pune facilities also handle manufacturing of WiFi modules, NFC, RFID, camera optics, and other power electronics. In September 2024, Jabil announced a ₹2,000 crore investment for the new factory in Tiruchirappalli.
Recently, Jabil executives from the US visited Tamil Nadu and met with Chief Minister MK Stalin in Chennai. They also inspected the upcoming Tiruchirappalli facility, which is currently under construction.
Sources close to the matter said that Jabil intends to strengthen its manufacturing footprint in India, similar to other Apple vendors. The company previously outlined plans to open two new production units over the next three to four years, combining assembly and manufacturing for Apple products.
This development comes as part of a broader shift in Apple’s global supply chain. Along with Jabil, other suppliers like Motherson Group, Aequs, and Tata Electronics are also involved in exporting components for various Apple devices to China and Vietnam.
Meanwhile, Apple’s new iPhone production unit in Tamil Nadu has started operations, and another unit in Karnataka is expected to begin shipments in the coming weeks. Foxconn’s under-construction $2.6 billion plant near Bengaluru is also set to start initial assembly line operations shortly.
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