What Apple’s biggest iPhone supplier Foxconn told Indian government on asking hundreds of Chinese employees to ‘Leave India’

Mary altaffer file.jpg


What Apple's biggest iPhone supplier Foxconn told Indian government on asking hundreds of Chinese employees to 'Leave India'
FILE – The Apple logo is displayed at an Apple store, Jan. 3, 2019. (AP Photo/Mary Altaffer, File)

Foxconn has asked hundreds of Chinese engineers and technicians to return home from its iPhone factories in India, with the Indian government being informed of the staff withdrawal without being provided specific reasons for the move. More than 300 Chinese workers have left the facilities over the past two months, Bloomberg reported, dealing a significant blow to Apple‘s manufacturing expansion in the South Asian country.

Apple’s India manufacturing push faces major setback as Chinese expertise exits

The departure of Chinese technical staff will slow down the training of local workforce and the transfer of manufacturing technology from China, likely raising production costs and affecting efficiency on iPhone assembly lines. According to Bloomberg, the timing is particularly challenging as Apple prepares to ramp up production of the new iPhone 17 with its manufacturing partners in India.The move appears linked to Beijing’s broader strategy to curb technology transfers and equipment exports to India and Southeast Asia. Earlier this year, Chinese officials verbally encouraged regulatory agencies and local governments to restrict such transfers, potentially aimed at preventing companies from shifting manufacturing away from China.

Foxconn implements contingency measures amid Chinese staff withdrawal

To mitigate the impact, Foxconn is replacing departing Chinese staff with Taiwanese and Vietnamese workers while converting machinery to be operated by Indian employees. The company is asking suppliers to retrofit existing machinery that largely runs on Chinese-language software to be used by English-speaking engineers.The Indian government has not seen a major impact on phone production yet, according to a person familiar with the matter. Foxconn is expected to receive the retrofitted machinery in a few months, while the company continues building a new iPhone plant in southern India as part of Apple’s plans to manufacture most iPhones for the US market in India by late 2026.Apple CEO Tim Cook has previously praised the skill and expertise of Chinese assembly workers as a key reason for setting up production in China, beyond just cost advantages. The withdrawal of these experienced engineers from India represents a significant setback for Apple’s diversification strategy, particularly as the company seeks to reduce its dependence on Chinese manufacturing amid ongoing geopolitical tensions.





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