Taiwanese contract manufacturer Pegatron is in ongoing discussions to open its second factory in India, according to a new report by Reuters.

The report adds that Pegatron’s proposed facility is set to be based in Mahindra World City near Chennai. The planned facility would be smaller than Pegatron’s first $150 million factory which started operations six months ago, also based around Chennai. The report was unclear on the financial expenditure the would-be facility would incur.

The new facility is designated to assemble Apple’s most recent iPhones. Pegatron was reached out to comment, but simply stated that “Any acquisition of assets will be disclosed based on regulations.” Pegatron already manufacturers 10% of all iPhones in India, according to Counterpoint Research data seen by Reuters.

The move comes as Apple and its suppliers are keen on diversifying the supply chain away from China in response to the country’s economic and political tensions with the US. Just last week, Apple’s largest contract manufacturer Foxconn announced plans to invest north of $200 million to build AirPods in the country. The news further comes on the back of Apple CEO Tim Cook’s expected appearance at China’s “economic recovery” conference.