Foxconn recalls Chinese staff from India, raising concerns over iPhone 17 rollout
| 2025-07-03
Foxconn recalls Chinese engineers from India
Foxconn has recalled over 300 Chinese engineers from India, threatening delays to Apple’s iPhone 17 production as geopolitical tensions mount.
Foxconn’s decision to withdraw over 300 Chinese engineers from its Indian factories could slow Apple’s plans to increase iPhone production outside China.
Apple’s largest iPhone manufacturer, Foxconn, has recalled several hundred Chinese technical staff from its Indian production facilities, raising questions over the company’s ability to maintain smooth operations ahead of the launch of the iPhone 17. The move, reported by Bloomberg, comes as geopolitical tensions and competition for advanced manufacturing capabilities continue to reshape global technology supply chains.
Sudden departure of key personnel
According to Bloomberg, more than 300 Chinese engineers and technicians left Foxconn’s iPhone assembly plants in southern India over the past two months. While the company has not publicly explained the decision, industry analysts have noted that such skilled staff play a critical role in setting up and overseeing production lines for complex devices like smartphones.
The abrupt withdrawal follows earlier reports suggesting Chinese authorities were seeking to curb the outflow of technology and expertise to countries such as India and Vietnam. Bloomberg reported that officials in Beijing had privately encouraged regulators to limit the movement of specialised equipment and skilled personnel to regions seen as competitors in advanced manufacturing.
Impact on production plans
Foxconn’s Indian facilities, including new units in Tamil Nadu and Karnataka, are central to Apple’s efforts to reduce reliance on Chinese factories. In May, the Taiwanese manufacturer invested $2.56 billion in expanding its plant near Bengaluru, targeting production of 100,000 iPhones by December. This expansion is part of a broader goal to shift a significant share of output destined for the United States to India by 2026.
However, without experienced Chinese engineers to train local teams and supervise production processes, the timeline for scaling up output could be delayed. Although Foxconn has deployed Taiwanese support staff, specialists say their absence will likely affect the efficiency of assembly lines during the crucial ramp-up period.
“Assembly line efficiency could suffer during the critical ramp-up period for next-generation iPhone production,” Bloomberg noted, citing people familiar with the matter.
Broader geopolitical tensions
The development reflects the complex pressures Apple faces as it diversifies manufacturing amid trade disputes between the United States and China. In May, former US President Donald Trump threatened to impose a 25% tariff on Apple devices imported from India, stating that the company should build products domestically if it wished to avoid extra costs. While it is unclear how this position will be implemented, it adds further uncertainty for Apple’s supply chain.
China’s strategy to maintain its dominance in electronics manufacturing reportedly includes restricting the export of critical machinery and discouraging the relocation of production to rival economies. The moves come as India and Vietnam have offered incentives and infrastructure support to attract multinational technology companies.
India’s growing role
Despite recent challenges, India’s share of global iPhone production has expanded rapidly. According to Bloomberg, the country now accounts for roughly 20% of worldwide iPhone assembly, an increase from virtually none just four years ago. Between March and May this year, Foxconn exported iPhones worth $3.2 billion from India, with nearly all shipments bound for the United States. In May alone, Indian exports reached nearly $1 billion in value.
To support this growth, Foxconn is building large-scale worker accommodations and investing in additional infrastructure. Its Karnataka plant is expected to house 30,000 employees, many of whom are women.
Semiconductor ambitions
The Indian government has also cleared Foxconn to build a semiconductor facility in partnership with domestic conglomerate HCL Group. The planned investment of approximately $432 million in the northern state of Uttar Pradesh is part of India’s push to develop its own chip-making capacity and reduce dependence on imports.
Outlook and uncertainties
While Apple has not formally commented on the recall of Chinese personnel, Chief Executive Officer Tim Cook has in the past acknowledged that Chinese technical expertise remains vital for maintaining production quality and standards. “The irreplaceable expertise of Chinese assembly workers is fundamental to maintaining production standards,” he said in an earlier interview.
Analysts caution that without clear communication from Foxconn and Beijing, it is difficult to assess whether the withdrawals are temporary or the start of a longer-term retrenchment of Chinese staff from India.
If the shortage persists, Apple’s ambitions to produce the majority of iPhones bound for US consumers in India by 2026 could face delays.
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