A blast rocked a compound at the building in southwest China earlier this evening, sending dozens of workers fleeing into the streets as flames engulfed the electronics inside.
The fire is the latest disaster to hit the cursed Foxconn factory - dubbed Suicide Express - where a string of workers have killed themselves amid appalling working conditions.
Flames engulfed the damaged building was in the Sichuan capital Chengdu and was where the new iPad was being made.
Employees who were inside the building at the time said the explosion, which happened early this evening, seemed accidental.
The workers said that several hundred people were working in the building at the time of the blast.
Calls to the spokesman for the Chengdu fire brigade, who is on the scene, went unanswered.
This is the latest incident to hit the embattled Foxconn, after at least 13 of its employees died in apparent suicides last year, which activists blamed on tough working conditions.
Foxconn is the world's largest maker of computer components and produces items for Apple, Sony and Nokia. It employs about one million workers in China. Read More
Update: "At this point, we can also confirm that there were two fatalities with injuries to 16 other employees," a company spokesperson said. "We are working with medical officials to provide treatment to the injured employees and we are working with government and law enforcement officials to contact the families of all employees affected by this tragedy." Source