Last week, Microsoft announced devastating cuts to its phone hardware business, including the loss of 7,800 jobs, and a significant scaling down of the company's smartphone range. Microsoft also wrote down $7.6 billion of assets related to its 2014 acquisition of Nokia's devices and services business.
As part of its restructuring, it seems that Microsoft plans to outsource at least some of its handset manufacturing operations. The Times of India reports that the company is close to signing a deal with Foxconn to build Lumia handsets in Sri City, Andhra Pradesh.
Foxconn is no stranger to building phones - the company builds any number of devices for other brands, including Apple's iPhone. But Foxconn also has an established relationship with Microsoft, having built its Xbox consoles for many years.
Today's report quotes 'multiple' unnamed sources as saying that Microsoft aims for two of its Lumia handsets to be built in India by Foxconn, but emphasizes that the deal has not yet been finalized.