Apple Inc supplier Foxconn to invest more than $500 million in Telangana for setting up manufacturing plants, according to the state's information technology minister.

K T Rama Rao tweeted that the investment's first phase will result in the creation of 25,000 direct jobs.

In March, Reuters reported that the Taiwanese contract manufacturer had secured an order from Apple to produce AirPods, and intended to build a factory in India for that purpose.

Telagana got the ball rolling for its first Foxconn plant in the state at Kongara Kalan, near Hyderabad, on Monday (15 May). The facility will be spread over an area of 200 acres.

In a joint statement from the state government and Foxconn, the new electronics manufacturing facility will help diversify Foxconn Interconnect Technology's global manufacturing base.

“The Government of Telangana’s unwavering commitment to fostering a favourable business environment has enabled Foxconn Interconnect Technology to invest and grow in the State,” the statement said.

The proposed facility would serve as a hub for Foxconn Interconnect Technology’s operations in Telangana, allowing Foxconn to expand its production capacity.

Besides benefiting the business, the plant will "contribute to the overall economic prosperity of the region,” the statement said.

In late March, neighbouring state Karnataka approved Foxconn's investment of $968 million in the state.

Due to Covid-19 restrictions that disrupted manufacturing in China, Apple is shifting production away from there to avoid further business damage, with ongoing tensions between Beijing and Washington also a contributing factor.