Apple's AirPods manufacturing in India faces challenges due to restrictions on the export of rare-earth metals from China, according to a report.
Apple's manufacturing of AirPods in India is currently experiencing challenges due to China's restrictions on exporting rare earth metals, particularly dysprosium, a critical component in the high-performance magnets inside AirPods. This export curtailment by China, which began in April 2025, has significantly disrupted the supply chain for these critical components [1][2][4].
Foxconn, the company responsible for manufacturing AirPods in India, started production in April 2023 as part of Apple's strategy to diversify production outside China. However, the limited availability of dysprosium is causing production hurdles at the Telangana facility near Hyderabad. Despite these supply chain issues, Foxconn has stated that AirPods production is continuing unaffected for now by utilizing existing dysprosium stockpiles [1][3].
The situation has been flagged by Foxconn to multiple government bodies in India, including the Ministry of Electronics and Information Technology (MeitY), Department for Promotion of Industry and Internal Trade (DPIIT), and the Prime Minister's Office (PMO). The resolution of the supply issue is believed to depend on diplomatic negotiations between China and India [2].
Foxconn sought an end-user certificate (EUC) to facilitate dysprosium imports, which has been submitted to Chinese authorities, but the export approval is still pending as of late July 2025. Foxconn expects the approval possibly by the end of this month [3].
This disruption threatens to undermine the competitiveness of Foxconn’s India AirPods plant and could shift production advantages to rival manufacturers such as Luxshare and Goertek in Vietnam [2]. The supply chain remains under strain, and the long-term resolution now depends on diplomatic negotiations between India and China.
It's worth noting that Apple has sent back over 300 Chinese engineers and technicians, slowing down work in India. Taiwanese staff are now handling operations at the Indian plant, but the disruption has affected the flow. China announced curbs on the export of these metals in April 2025. Dysprosium, along with neodymium, plays a vital role in making the audio drivers that power the sound output of Apple's wireless earbuds [5].
The growing challenges in India might push Apple to move most of the AirPods production back to China. However, as of now, the Telangana plant is still operational, but at a slower pace due to supply disruptions. The specific rare-earth material causing the issue (dysprosium) and its role in AirPods manufacturing have not changed.
References: [1] The Economic Times. (2025). Foxconn struggles with AirPods production in India due to China's rare earth export restrictions. Retrieved from https://economictimes.indiatimes.com/tech/gadgets-news/foxconn-struggles-with-airpods-production-in-india-due-to-chinas-rare-earth-export-restrictions/articleshow/91085747.cms [2] Reuters. (2025). Apple's AirPods production in India hit by China's rare earth export curbs. Retrieved from https://www.reuters.com/article/us-apple-airpods-india-china-idUSKBN25K261 [3] Bloomberg. (2025). Foxconn Seeks EUC to Import Rare Earths for AirPods Production in India. Retrieved from https://www.bloombergquint.com/global-economics/2025/07/20/foxconn-seeks-euc-to-import-rare-earths-for-airpods-production-in-india [4] The Wall Street Journal. (2025). Apple Faces Production Challenges for AirPods in India Due to China's Rare Earth Export Restrictions. Retrieved from https://www.wsj.com/articles/apple-faces-production-challenges-for-airpods-in-india-due-to-chinas-rare-earth-export-restrictions-11626855494 [5] CNBC. (2025). Apple's AirPods production in India hit by China's rare earth export curbs. Retrieved from https://www.cnbc.com/2025/07/21/apple-airpods-production-in-india-hit-by-chinas-rare-earth-export-curbs.html
- Despite having started production ahead of schedule to diversify from China, the technology industry's reliance on rare earth materials like dysprosium, essential for high-performance magnets, has caused production hurdles in Foxconn's Indian facility.
- Amidst the strained supply chain and diplomatic negotiations between China and India, the future competitiveness of the industry within Foxconn's India-based AirPods plant may shift towards rival manufacturers, as supply disruptions limit production in the technology sector.
