July 8, 2025

Foxconn has requested hundreds of Chinese engineers and technicians to depart from its iPhone production facilities in India, notifying the Indian government without specifying reasons for the decision. Over 300 Chinese workers have left in the past two months, impacting Apple's manufacturing growth in the country. The absence of Chinese technical staff will impede the training of local employees and technology transfer from China, likely leading to increased production costs and reduced efficiency on iPhone assembly lines. As Apple gears up to increase production of the new iPhone 17 with its manufacturing partners in India, this development poses a challenge. The situation seems to be part of Beijing's broader plan to limit technology transfers and equipment exports to India and Southeast Asia. Earlier this year, Chinese authorities verbally encouraged regulatory bodies and local administrations to restrict such transfers, possibly with the aim of preventing companies from moving their manufacturing operations out of China. To offset the impact, Foxconn is substituting departing Chinese staff with workers from Taiwan and Vietnam, while also adapting machinery to be operated by Indian workers. The company is requesting suppliers to modify existing machinery, largely controlled by Chinese-language software, for use by English-speaking engineers. Although the Indian government has not observed a significant disruption in phone production so far, Foxconn is anticipated to receive the modified machinery in a few months. Concurrently, the company is constructing a new iPhone plant in southern India as part of Apple's strategy to produce most iPhones for the US market in India by late 2026. Apple CEO Tim Cook has previously commended the skill and expertise of Chinese assembly workers as a key reason for establishing production in China, highlighting the setback caused by the departure of these experienced engineers from India. This move represents a notable challenge for Apple's diversification plans, especially amidst the company's efforts to lessen its reliance on Chinese manufacturing amid ongoing geopolitical tensions.

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Tags: Foxconn, Apple, Iphone, China, India,