Apple’s AirPods production in India hit by China’s rare-earth metal export curbs: Report

Apple has been reportedly facing problems in manufacturing AirPods in India following China’s recent export restrictions on rare-earth metals. According to a MoneyControl report, the Foxconn Interconnect Technology (FIT) facility in Telangana is dealing with a shortage of dysprosium, a critical rare earth material that is used in high-performance magnets inside AirPods.

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For the unversed, Dysprosium, along with neodymium, plays a vital role in making the audio drivers that power the sound output of Apple’s wireless earbuds. Both these metals are majorly sourced from China, which announced curbs on their export in April 2025. Now, the report mentioned that the restrictions have been tightened for the Indian plant. However, it has not come to a full halt.

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The MoneyControl report, citing sources, stated that Apple and Foxconn had anticipated potential supply constraints and made contingency arrangements to keep production running. However, the report added that the supply chain remains under the strain and the situation has been flagged by Foxconn to multiple government bodies, including the Telangana state government, the Ministry of Electronics and IT (MeitY), the Department for Promotion of Industry and Internal Trade (DPIIT), and the Prime Minister’s Office (PMO). The report also stated that the long-term resolution now depends on the diplomatic negotiations between India and China.

Also read: India’s smartphone shipments grows by 7 pct in Q2: Vivo holds the top spot, followed by Samsung

In a related previous news, the company had sent back over 300 Chinese engineers and technicians, which has slowed down work and affected Apple’s India plans. As per the reports, Taiwanese staff are now handling operations, but the disruption has affected the flow.

These growing challenges in India might push Apple to move most of the AirPods production back to China. However, Apple has not made any official statement on it. On the other hand, the Chinese companies like Luxshare and Goertek, which already make AirPods for Apple, can benefit from this shift.

For now, the Telangana plant is still operational, but at a slower pace due to the supply disruptions, a report added.

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Ashish Singh

Ashish Singh is the Chief Copy Editor at Digit. He's been wrangling tech jargon since 2020 (Times Internet, Jagran English '22). When not policing commas, he's likely fueling his gadget habit with coffee, strategising his next virtual race, or plotting a road trip to test the latest in-car tech. He speaks fluent Geek. View Full Profile