Foxconn, for the first time, has won orders to manufacture AirPods, and it is planning to do that in India at a new plant in Telangana, reports Reuters.

The AirPods deal is a first for the Apple manufacturer, and further establishes how the company is looking to invest in other regions for manufacturing than China. They are planning to invest over $200 million in this deal.

While Foxconn is the one to bid for the project, the request to set up the plant in India came from Apple, as the company is looking to diversify production beyond China due to the Sino-US friction. Apart from Apple’s request, Foxconn is looking to increase its independence away from China for their manufacturing efforts, including iPhone in addition to other Apple products. India is becoming increasingly lucrative for Apple and its partners as the country reformed its labor laws allowing more flexible shift-working hours.

Foxconn’s officials internally debated about bidding for this deal but ultimately decided to go ahead with it as a way to “reinforce engagement” with Apple, reports Reuters. The plant is scheduled to be established in the second half of 2023., with manufacturing beginning by the end of 2024. Foxconn is the most prominent manufacturer of electronic devices and assembles 70% of all iPhones.