Apple’s India Manufacturing Ambitions Face Setback as Foxconn Pulls Chinese Engineers
By Cygnus | 03 Jul 2025
Apple’s efforts to expand its manufacturing footprint in India have hit a roadblock. Foxconn, the tech giant’s key assembly partner, has quietly recalled a large number of Chinese engineers and technicians from its iPhone production facilities in India—casting uncertainty over Apple’s aggressive growth plans in the country.
Sources familiar with the matter say that over 300 Chinese workers were asked to return home nearly two months ago. Many have since left their posts at Foxconn’s South India plant, which handles the lion’s share of iPhone assembly in the country. In their place, Taiwanese personnel have reportedly taken over operational oversight.
This internal reshuffle comes at a crucial time. Apple has been actively working to reduce its reliance on Chinese manufacturing by diversifying production to other regions—India being the most prominent. The move was part of a broader strategy to mitigate geopolitical risks and tap into India’s growing role as a global electronics manufacturing hub.
But the departure of Chinese experts could slow that momentum. These specialists play a pivotal role in training local workers and transferring advanced manufacturing know-how. Without them, ramping up quality production at scale could prove more difficult—and more costly.
A Delicate Balancing Act
Adding to the complexity are rising geopolitical tensions. Earlier this year, Chinese authorities reportedly began discouraging the transfer of advanced tech and equipment to overseas markets, including India. While neither Foxconn nor Apple has issued a formal comment, the timing of the workforce pullback aligns with these informal policy shifts from Beijing.
Apple CEO Tim Cook has previously acknowledged the critical role Chinese workers have played in building the company’s production efficiency over the years. The current disruption may not compromise the quality of Indian-made iPhones, but insiders warn it could hurt productivity and slow down Apple's localization efforts.
India currently produces about 40 million iPhones annually, representing roughly 15% of Apple’s total output. The long-term goal is to significantly increase that share, with some reports suggesting Apple aims to shift all U.S.-bound iPhone production to India by as early as next year. But that timeline may now be in jeopardy.
Summary
Apple’s push to make India a major manufacturing base faces a new hurdle as Foxconn withdraws key Chinese personnel from its Indian plants. The move risks slowing production efficiency and disrupting knowledge transfer, just as Apple looks to scale up local output. With geopolitical pressures mounting, Apple may need to recalibrate its India strategy to keep its supply chain ambitions on track.
Frequently Asked Questions (FAQs)
1. Why is Apple shifting iPhone production to India?
Apple is looking to diversify its supply chain to reduce dependence on China due to rising geopolitical tensions, trade restrictions, and the need for supply chain resilience. India offers growing infrastructure, government incentives, and a large labor force—making it a strategic alternative.
2. What role does Foxconn play in Apple’s global manufacturing?
Foxconn is Apple’s largest contract manufacturer and assembles the majority of iPhones globally. Its factories in China and India are critical to meeting Apple’s production targets and launch timelines.
3. How does the removal of Chinese engineers affect Apple’s India operations?
Chinese engineers are key to training local staff and transferring high-precision manufacturing expertise. Their withdrawal may reduce assembly line efficiency and delay Apple’s scaling efforts in India.
4. Is this move connected to China’s recent tech export policies?
While there’s no official confirmation, the timing coincides with reports of Chinese authorities urging companies to restrict tech and equipment transfers to India and Southeast Asia, potentially to discourage industrial migration.
5. Will iPhone production in India be impacted in the short term?
Production may continue, but with less efficiency. While quality is expected to remain stable, delays in scaling up output and rising operational costs are likely challenges.
6. Which Indian companies are involved in Apple’s supply chain?
Tata Group has become a key local partner by acquiring Wistron’s Indian operations and taking control of Pegatron’s facilities. These moves position Tata as a central player in Apple’s India strategy.
7. How many iPhones are currently made in India?
India produces approximately 40 million iPhones annually—roughly 15% of Apple’s global output. Apple aims to increase this significantly in the coming years.
8. Does Apple manufacture any iPhones in the U.S.?
No. Apple does not manufacture smartphones in the U.S. Its iPhones are predominantly assembled in China, with a growing share in India.
9. What does this mean for India's ambitions as a global manufacturing hub?
The situation highlights both progress and challenges. While India is attracting major tech manufacturers, it still depends heavily on foreign expertise and faces hurdles in building deep manufacturing capabilities.
