Foxconn Withdraws Chinese Staff From India, Posing New Challenge for Apple

Foxconn Technology Group has recalled hundreds of Chinese engineers and technicians from its iPhone manufacturing plants in southern India, creating a potential roadblock in Apple Inc.'s efforts to expand production outside China.

According to sources familiar with the matter, more than 300 Chinese workers have already returned home over the past two months, leaving mostly Taiwanese support staff on-site. The move comes amid rising geopolitical and regulatory tensions, as Beijing reportedly encouraged authorities to restrict the transfer of technology and equipment to India and Southeast Asia—part of a broader strategy to stem the exodus of high-tech manufacturing.

While the exact reason behind the recall remains unclear, the departure of Chinese personnel is expected to hinder the training of the Indian workforce and slow the transfer of technical know-how. Though production quality in India is not expected to decline, insiders warn that assembly line efficiency may be compromised, possibly raising overall production costs.

This development poses a setback for Apple at a critical time, as the company gears up to ramp production of the upcoming iPhone 17. Foxconn is also constructing a new iPhone manufacturing facility in southern India, which is likely to be impacted by the reduced availability of skilled trainers from China.

Apple CEO Tim Cook has long emphasized that Apple’s reliance on China is based not only on cost but also on the high level of skill among Chinese assembly workers. Their withdrawal from India, therefore, may delay the localization of advanced manufacturing processes.

The shift also reflects growing global supply chain realignment. Apple began relocating parts of its production to India and Vietnam during Donald Trump’s first term as US president—a move now accelerating due to fresh US tariff plans. In response, China has curbed exports of rare earth minerals and restricted movement of skilled labor and high-end equipment.

Foxconn, though still primarily based in China, has rapidly scaled up operations in India over the last four years. India now contributes roughly 20% of global iPhone output, and Apple has plans to manufacture most of its US-bound iPhones in India by 2026.

However, Trump has criticized Apple’s offshore manufacturing strategy, urging the tech giant to shift production to the US—an idea complicated by higher labor costs and China's reported reluctance to allow its trained personnel to leave the country.

Apple has not issued an official statement on the matter, and Foxconn has yet to respond to media inquiries.