Foxconn recalls Chinese staff from India; Apple's local expansion faces setback
According to a Bloomberg report, more than 300 Chinese staff have already exited India, and mostly Taiwanese support personnel remain at Foxconn's Indian sites. While neither Apple nor Foxconn has publicly commented, the recall began quietly about two months ago and is reportedly linked to Beijing's growing restrictions on the transfer of manufacturing know-how and technology to other countries, especially India and Southeast Asia. Chinese authorities have informally urged domestic regulatory bodies to discourage the export of advanced equipment and high-skilled labor in an effort to prevent foreign rivals from becoming viable alternatives to China's manufacturing dominance.
This move comes at a particularly sensitive time for Apple. India has rapidly gained ground in Apple's global supply chain, now accounting for nearly 20 percent of iPhone production. Foxconn has played a central role in building up this capability by deploying experienced engineers from China to train Indian staff and help set up local production processes. Their sudden withdrawal is expected to slow the pace of workforce training and reduce the speed of technology transfer, which in turn could raise operational costs and reduce assembly line efficiency. While the production quality is not expected to suffer in the short term due to established procedures and support from Taiwan-based staff, there is a real risk that efficiency and ramp-up timelines may be impacted, particularly for the iPhone 17.
Indian government sources cited by Bloomberg say they were informed of the move and are not yet observing major disruptions in production. However, analysts note that the real impact may surface during the critical pre-launch months for new iPhone models when engineering precision and line-speed become vital.
Apple has previously emphasised that its preference for China as a manufacturing base goes beyond labor costs, citing the high level of skill and production culture ingrained in Chinese workers. The current geopolitical climate, however, is forcing a recalibration. As tensions between the United States and China escalate — including threats of new tariffs under Donald Trump's potential return to the White House — India and countries like Vietnam have been making a concerted push to attract companies looking to diversify supply chains. India in particular has benefited from this shift, securing large investments from Apple's suppliers including Foxconn, Pegatron, and Wistron (now Tata Electronics).
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