Production at Foxconn’s Telangana-based facility has been impacted due to a critical shortage of dysprosium — a rare earth element essential for manufacturing Apple AirPods — according to a report individuals familiar with the matter.
This disruption comes in the wake of China’s decision to restrict exports of seven rare earth metals, including dysprosium, gadolinium, terbium, samarium, lutetium, scandium, and yttrium. These elements are vital in producing high-strength magnets used across advanced technologies such as smartphones, electric vehicles, fighter aircraft, and wind turbines.
Of particular importance for AirPods production are dysprosium and neodymium, with the latter still sourced from China and select other nations. The unavailability of dysprosium, however, has put strain on component assembly timelines.
The affected facility, operated by Foxconn Interconnect Technology (FIT) — a key subsidiary of Hon Hai Technology Group (Foxconn) — is located in Kongara Kalan, near Hyderabad. The company is said to have informed the Telangana government about the supply chain bottleneck.
This development aligns with recent efforts by the Indian government to reduce dependence on Chinese imports. Commerce and Industry Minister Piyush Goyal recently met with leading Indian automakers and component manufacturers in New Delhi, encouraging them to innovate and invest in domestic technology solutions for critical inputs.
Additionally, the Centre is reportedly working on a ₹1,345 crore incentive plan to boost domestic magnet production, which could eventually help mitigate such supply shocks in the future.
Inc42 has reached out to Foxconn for an official response, and this story will be updated as new details emerge.
