Foxconn recalls Chinese staff from Indian facilities. Will it affect iPhone 17 production in India?

Foxconn Technology Group, the largest manufacturer of Apple’s iPhone, has recalled hundreds of Chinese engineers and technicians from its production facilities in India. The move is expected to hamper the tech giant’s plans to ramp up its production in India. The withdrawal of Chinese staff, who are critical to production line setup and technical oversight, comes amid the rising tensions between the nations. The move will affect Apple’s production facilities in southern India, as only Taiwanese support personnel remain onsite.

According to a Bloomberg report, the majority of the Chinese workers deployed at the company’s facilities in India were told to return two months ago. Since then, more than 300 workers have left the plants. It is not clear why the Chinese staff was recalled.

Earlier this year, Bloomberg reported that “officials in Beijing verbally encouraged regulatory agencies and local governments to curb technology transfers and equipment exports to India and Southeast Asia.” The move is seen as discouraging companies from shifting manufacturing out of China.

Foxconn’s move to recall Chinese employees could affect the production of the latest iPhone 17, of which the company plans to expand manufacturing in India. However, no major impact has been seen yet, the Bloomberg report said. However, “assembly line efficiency could suffer during the critical ramp-up period for next-generation iPhone production,” it added.

Beijing’s strategy is said to extend beyond the recall of personnel. It also includes restricting the export of specialised equipment and technical expertise essential for the manufacturing of high-end electronics. “China’s actions come as countries like India and Vietnam aggressively court global technology companies seeking to diversify their supply chains away from Chinese dependence,” Bloomberg reported.

Earlier, Apple CEO Tim Cook underscored the importance of Chinese technical talent in the supply chain of the iPhone. “The irreplaceable expertise of Chinese assembly workers,” he said, is not only about cost advantages but “fundamental to maintaining production standards.”

Top intelligence sources told CNN-News18 that the move is part of China’s plan to foil India’s aim of becoming a global manufacturing hub. This may also impact India’s reputation in the world as a reliable supply chain partner.

India accounts for about 20 per cent of the global iPhone production, which marks an impressive shift given that the large-scale manufacturing only started four years earlier in the country. Apple is aiming to produce most of its US-bound iPhones in India by the end of 2026.