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Foxconn recalls staff from India, iPhone 17 production may be hit
Sources indicate that Foxconn—previously preparing for a new assembly unit—may have made this decision following a directive from the Chinese government. This also comes at a time when China is reportedly delaying the clearance of critical smartphone manufacturing equipment needed to make the new iPhone models in India. The delay could hinder the training of the local workforce and slow the transfer of manufacturing technology from China to India, potentially increasing production costs. An Apple spokesperson did not respond to queries from Business Standard by the time of going to press.
Interestingly, Foxconn had been planning to hire 1,000 additional local employees in India by mid-July, adding to its current workforce of around 40,000, according to a South India-based industry source. Industry experts said the company may consider recruiting engineers from Vietnam to replace the Chinese staff. The development is seen as a protectionist move by Beijing aimed at preventing manufacturers from shifting production out of China, as it also restricts technology transfers and equipment exports.
When asked about the issue, a senior official from the Ministry of Electronics and Information Technology (MeitY) said, 'We don't see any problem. Their technicians come from China and Taiwan regularly. We also have enough trained manpower. Many companies have also started manufacturing machines locally. At most, there may be some disruption for a month.'
Earlier in the day, Bloomberg reported that Foxconn had asked hundreds of Chinese engineers and technicians to return home from its iPhone plants in India. Apple Chief Executive Officer Tim Cook has previously praised the skill and efficiency of Chinese assembly workers, stating that it was not just cost advantages but their expertise that led to the concentration of Apple's production in China.
Apple is expected to release four models in its 2025 lineup: the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and a new variant, the iPhone 17 'Air'. China's decision to recall staff could deal a significant blow to Apple's target of producing iPhones worth $40 billion in India by the end of FY26. This production was intended to serve 80 per cent of US demand and 100 per cent of India's growing domestic demand. Of the $40 billion target, export markets are expected to contribute $32–35 billion, while the domestic market accounts for an estimated $5–8 billion.
While Foxconn continues to manufacture most iPhones in China, it has built up significant assembly operations in India in recent years. The company had deployed a large number of experienced Chinese engineers to accelerate its expansion, the Bloomberg report added.
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