Bad news for India as Foxconn asks hundreds of Chinese engineers to…, Apple iPhone production likely to…, Modi government now plans…
The move by Foxconn to call back its engineers and technicians is likely to hit the production costs and affect the efficiency on iPhone assembly lines in India. The decision will also slow down the training of the local workforce and the transfer of manufacturing technology from China. 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 also appears to be part of 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.
The Indian government has not witnessed any major impact on phone production yet, according to a person familiar with the matter. It is important to note that 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. Here are some of the key details: Foxconn is replacing departing Chinese staff with Taiwanese and Vietnamese workers. This will mitigate the impact.
The company is converting machinery to be operated by Indian employees.
The company has asked the suppliers to retrofit existing machinery that largely runs on Chinese-language software to be used by English-speaking engineers.
Foxconn is expected to receive the retrofitted machinery in a few months
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.
The departure of these seasoned engineers from India marks a major setback for Apple's diversification efforts, especially as the company aims to lessen its reliance on Chinese manufacturing amid persistent geopolitical tensions.
The Apple ecosystem in India employs approximately 200,000 people across various vendors, making it one of the country's largest job creators in the technology sector.
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