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Apple’s India Ambitions in Jeopardy as Foxconn Recalls Chinese Workforce

Foxconn has recalled over 300 Chinese engineers from its iPhone factories in India, potentially delaying Apple’s expansion plans. The move could impact production efficiency and tech transfer as Apple aims to shift more assembly to India amid rising geopolitical tensions with China.

Published By: Karan Singh Rathod
Last Updated: July 3, 2025 11:39:54 IST

Apple’s ambitious plan to expand iPhone production in India has hit an unexpected obstacle. Foxconn Technology Group, Apple’s largest manufacturing partner, has reportedly pulled back hundreds of Chinese engineers and technicians from its iPhone plants in India, a move that could slow down Apple’s efforts to diversify away from its China-dependent supply chain.
According to a Bloomberg report, more than 300 Chinese employees, stationed mainly in Foxconn’s facilities in southern India, were asked to return home over the past two months. In their place, Taiwanese support staff have taken over operations. While no official statement has been issued by either Apple or Foxconn, sources familiar with the situation say the withdrawal could delay critical processes like the training of local workers and the transfer of advanced manufacturing knowledge.

Key Personnel Exit Threatens Apple’s Expansion Timeline

The majority of iPhones manufactured in India come from Foxconn’s southern India plant, with Tata Group and Pegatron also playing crucial roles in Apple’s supply chain. The Chinese engineers who have left were instrumental in streamlining production, overseeing assembly quality, and fast-tracking local workforce training. Their exit is expected to slow down efficiency, raise costs, and potentially push back Apple’s production targets in the country.
While Apple has made significant strides in India now producing roughly 40 million iPhones annually, or about 15% of its global output—this setback comes at a critical moment. Apple had been aiming to shift the entire assembly of iPhones sold in the U.S. to India as early as next year. That goal may now face delays.

Geopolitical Tensions Cast Shadow Over Tech Transfer

Industry insiders suggest the withdrawal may also be linked to rising geopolitical tensions. Earlier this year, Chinese authorities reportedly encouraged local regulators to limit technology transfers and equipment exports to countries like India and those in Southeast Asia. The goal may be to discourage companies from moving high-tech manufacturing out of China.
Apple CEO Tim Cook has often praised the expertise of China’s manufacturing workforce, highlighting their role in building Apple’s production strength. With the removal of this key talent from India, Apple’s plan to establish a second manufacturing hub may face a longer, more complicated road ahead.

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