Over 300 Chinese engineers and technical personnel have been urgently recalled from India by Foxconn Technology Group within a span of two months, according to reports. Meanwhile, most of the Taiwanese employees are reported to still remain in India.
The move, initiated approximately two months ago, saw Foxconn’s iPhone factory in southern India requesting the majority of Chinese employees to return to their home country, as stated by sources cited by Bloomberg on Wednesday, July 2nd. While over three hundred Chinese workers have left, the majority of support staff from Taiwan are said to be staying in India for work.
Due to confidentiality concerns, the sources chose not to disclose their identities.
The reason behind Foxconn recalling Chinese workers remains unclear at the moment. However, this action is expected to have an impact on Apple’s manufacturing operations, as Foxconn is a key contract manufacturer for Apple, responsible for assembling products like the iPhone.
It is reported that the Chinese government is taking measures to make it more challenging for technology, skilled labor, and specialized equipment to flow from China to emerging manufacturing countries like India. Earlier this year, Bloomberg reported that Beijing officials verbally instructed regulatory bodies and local governments to restrict technology transfer and equipment exports to India and Southeast Asia.
Sources suggested that the recall of Chinese workers from India by Foxconn may slow down local labor training and the transfer of manufacturing technology from China, potentially leading to increased production costs in the region.
According to one source, the employee recall is not expected to impact the production quality in India but could affect the efficiency of assembly lines.
Apple is gearing up to increase the production volume of the new iPhone 17 in collaboration with its manufacturing partners in India. Additionally, Foxconn is in the process of constructing a new iPhone factory in southern India.
A representative from Apple declined to comment on the situation. Foxconn did not respond to requests for comment via email.
The shift of global supply chains away from China began during the first term of US President Trump. At that time, Apple relocated some of its electronic product assembly from China to countries like India and Vietnam. The new tariff plan introduced in Trump’s second term further encouraged diversification of business for contract manufacturers like Foxconn, prompting Beijing to retaliate by restricting exports of rare earth minerals, labor, and technology.
Currently, a significant portion of Foxconn’s iPhones are still produced in China, but the company has gradually established substantial assembly operations in India. To expedite expansion efforts, Foxconn has deployed a large number of experienced Chinese engineers in India.
India only began large-scale iPhone assembly four years ago, and its current output accounts for one-fifth of global production.
For years, relations between China and India have been tense. Following conflicts at the border, direct flights between the two countries have yet to resume, India continues to restrict visas for Chinese citizens, and has banned Chinese mobile applications including TikTok. Meanwhile, despite relaxing export bans on fertilizer products to other countries, Beijing has maintained restrictions on fertilizer exports to India.