 "Foxconn halts Chinese workers' deployment to India, sends Taiwanese staff")
Foxconn, a key manufacturing partner for Apple, has stopped sending Chinese workers to its factories in India, replacing them with Taiwanese workers, Rest of World reported, citing sources. This shift comes amidst delays in the shipment of critical manufacturing equipment to India, a move that could have significant implications for Apple’s production strategy.
Equipment delays threaten Apple’s diversification plans
The delayed equipment shipments, meant for Foxconn's iPhone assembly plants in Tamil Nadu and Karnataka, could slow down Apple’s efforts to reduce its reliance on China for iPhone production.
“Currently, the equipment and manpower are not allowed to go over [to India],” a source told Rest of World. “And India doesn’t have the technology to produce the equipment.”
Apple’s move to India faces challenges
Apple began shifting production of its advanced iPhone models to India in 2019, partly due to disruptions caused by China’s strict zero-Covid policies. Foxconn, which started manufacturing iPhones in Tamil Nadu that same year, initially focused on older models.
While India has gradually increased its role in Apple’s supply chain, the manufacturing process still relies heavily on Chinese workers, Taiwanese specialists, and machinery sourced from China.
Chinese workers asked to cancel travel
Sources revealed that Chinese workers scheduled to travel to India were told to cancel their trips, even after securing visas and plane tickets. Those already in India were reportedly asked to return to China. This sudden change has left Foxconn scrambling to find replacements, with Taiwanese workers being considered to fill the gaps.
Geopolitical tensions cast a shadow
The disruptions come against the backdrop of escalating geopolitical tensions between China and India, fuelled by long-standing border disputes and economic rivalry. Some sources also allege that the Chinese government is behind the suspension of worker deployments and equipment exports to India.
To counter the setbacks in India, Foxconn is ramping up production at its Chinese factories to ensure sufficient iPhone units are available for final assembly in India.