Foxconn's Chinese engineers called back, disrupting Apple's India expansion

Over 300 Chinese engineers working at Foxconn's India iPhone plants have been called back, potentially slowing Apple's local expansion as it ramps up production of the upcoming iPhone 17

Over 300 Chinese engineers and technicians have been sent back from Foxconn’s iPhone factories in India, raising concerns about a potential slowdown in Apple’s local manufacturing push.

 

According to a Bloomberg report citing sources, the recall began nearly two months ago, with the majority of Chinese staff at Foxconn’s southern India facilities asked to return home. Most of those who remain are Taiwanese support personnel.

 

While Foxconn has not issued any statement on the move, it aligns with recent informal efforts by Chinese authorities to discourage the transfer of skilled labour, technology, and equipment to countries like India and Vietnam.

Apple’s dependence on Chinese expertise

Apple CEO Tim Cook has often praised the proficiency of China’s assembly workforce, attributing the company's reliance on the country to their expertise rather than just cost advantages. While the withdrawal of these staff from India is not expected to affect product quality, it could impact assembly line efficiency, a source told Bloomberg.

 

The development comes at a crucial moment for Apple, which is working with manufacturing partners in India to scale up production of the upcoming iPhone 17. So far, Apple has not issued any comment on the development.

China tightens grip on tech exports

Foxconn’s decision appears to align with recent efforts by Beijing to limit the movement of technology, skilled professionals, and specialised equipment out of China. These measures are seen as a response to growing interest from countries like India and Vietnam, which are working to attract global tech manufacturers amid ongoing tensions between the United States and China. Recently, China even halted the export of key rare earth metals. 

 

This shift in supply chains began during Donald Trump’s first term as US president, when Apple started shifting some of its device production to India and Vietnam. The trend has continued, especially as Trump pushes forward with new tariff plans. In response, China has tightened its grip on exports of rare earth materials, technology, and labour.

Foxconn’s presence in India

Although Foxconn still produces most iPhones in China, it has steadily expanded its operations in India, as earlier reported by Business Standard. To support this growth, the company had deployed many experienced Chinese engineers to help speed up production and train Indian workers. 

 

Chinese supervisors have played a key role in guiding Foxconn’s Indian workforce. Large-scale iPhone production in India began just four years ago and now contributes around 20 per cent of global output. Apple aims to manufacture most iPhones destined for the US market in India by the end of 2026. However, Trump has criticised this move, saying Apple should make phones for American users within the US.

 

High labour costs in the US make this idea difficult to implement. And if China restricts the movement of its skilled engineers, setting up advanced manufacturing in the US would become even less viable.

India-China relations

Meanwhile, India and China continue to share a strained relationship. While tensions have eased slightly over the past year, and high-level meetings have resumed, direct flights between the two countries remain suspended. 

  India still enforces strict visa rules for Chinese nationals and maintains bans on Chinese apps like TikTok. On the other hand, China continues to block exports of fertilisers to India, even though such restrictions have been lifted for other nations.