Apple’s iPhone production in India is under pressure as hundreds of Chinese engineers and technicians working for Foxconn have been recalled from its Indian facilities. The move is impacting preparations for manufacturing the next-generation iPhone 17, creating setbacks in Apple’s ongoing push to shift more of its production base from China to India.
Over 300 Engineers Pulled Out
Foxconn, Apple’s largest iPhone manufacturer, has withdrawn over 300 Chinese staff from its southern India plants. This withdrawal began two months ago and has left only Taiwanese support personnel on-site. The change is expected to pose challenges to the smooth operation of production lines during the ramp-up phase for the iPhone 17, although product quality may remain intact.
China Tightens Grip on Tech Workforce
Bloomberg reports that Chinese authorities are quietly preventing technology talent from moving to India and Southeast Asia. Government agencies have been instructed to restrict the export of skilled labor, sensitive equipment, and manufacturing knowledge. This is seen as a strategic move to maintain China’s dominance in high-tech production while discouraging firms from moving operations abroad.
Geopolitics Complicates Apple’s Supply Chain Shift
Apple aims to diversify its manufacturing base due to global supply chain risks and ongoing US-China tensions. Currently, India accounts for about 20 percent of global iPhone output, despite large-scale production beginning only in 2020. Apple had set a goal to produce most of its US-bound iPhones in India by the end of 2026, but the recent talent shortfall may delay those plans.
Apple Caught Between Global Tensions
Apple CEO Tim Cook has previously acknowledged that Chinese assembly workers bring unique skills essential to high-quality iPhone production. The current situation underscores the difficulty of replicating that expertise elsewhere. While India and Vietnam are becoming increasingly attractive to global tech companies, challenges in securing skilled labor and navigating diplomatic tensions with China continue to slow progress.
Strains in China-India-US Triangle
The withdrawal of Foxconn’s Chinese engineers adds another layer to the strained relations between China and India. Meanwhile, former US President Donald Trump has criticized Apple for offshoring manufacturing and has called for production to return to the US, despite higher labor costs. These overlapping tensions are creating significant uncertainty for companies trying to reorganize their global operations.
