Foxconn Technology Group has asked hundreds of Chinese engineers and technicians to return back from their iPhone factories in India. This move began about two months ago and over 300 Chinese staff have already left, a report by Bloomberg said. As of now, majorly the support staff from Taiwan is still in India.
The reason for Apple’s biggest iPhone assembler to make this move is unclear, but it comes after Beijing had earlier this year advised its officials to limit technology and equipment exports to India and Southeast Asia, possibly to stop companies from shifting manufacturing out of China, the Bloomberg report said.
Their removal from India is expected to slow down local worker training and the transfer of key manufacturing technology from China, which will lead to an increase in the production costs. While production quality won’t be affected, the efficiency of iPhone assembly in India might drop, the report said. The move comes as Apple is preparing to start production of the new iPhone 17 in India. Foxconn is currently in the process of manufacturing a new iPhone plant in southern India.
China pullback may slow Apple’s iPhone shift to India
Foxconn, which still makes most iPhones in China, has been growing its iPhone assembly operations in India in recent years. To speed things up, the company had sent many skilled Chinese engineers to train Indian staff.
These Chinese managers have played a key role in teaching local workers, as India only started making iPhones on a large scale about four years ago. Today, India produces about 20% of the world’s iPhones. Apple wants to build most iPhones for the US market in India by late 2026, but this plan has faced criticism from US President Donald Trump, who believes iPhones for Americans should be made in the US.
However, making iPhones in the US would be too expensive because of high labor costs. Also, if China stops its skilled workers from moving to the US, it would be even harder for Apple to start large-scale production at home.
Will iPhone production in India take a hit?
Foxconn told the Indian government that it was sending its Chinese workers back home, but didn’t explain why, the Bloomberg report said citing a person familiar with the matter. The person added that the move hasn’t caused any major impact on India’s phone production.
India and China have had tense relations for years as both countries try to increase their power in the region. While things have improved slightly since last year, some issues still remain.
Direct flights between the two countries still haven’t started again after past clashes at their shared border. India also still has restrictions on visas for Chinese citizens and continues to ban Chinese apps like TikTok. At the same time, China has kept a ban on sending fertilizer products to India, even though it has lifted that ban for other countries.