Apple bringing in foreign engineers to support Foxconn's India operations
What's the story
Apple is activating contingency plans to tackle a growing labor crisis involving Chinese workers at its partner Foxconn's iPhone factory in India. The company is considering bringing in engineers from other countries, top government sources told Moneycontrol. The Indian government is monitoring the situation but isn't overly concerned about immediate disruptions to iPhone production.
Staffing strategies
Apple is likely to handle situation on its own: Official
The Indian government official said that Apple is likely to handle the situation on its own, with alternative staffing strategies already in place. "We facilitated visas earlier at the company's request. If the Chinese workers want to return, it's between them and the company. Apple will have to decide how to keep operations running," he added.
Future prospects
Disruption seen as opportunity to strengthen domestic capabilities
The current disruption is seen as an opportunity to strengthen domestic capabilities. "Eventually, we need local capacity to manage such operations. I'd see this more as an opportunity," the official said. However, it could also slow Apple's expansion in one of its fastest-growing manufacturing hubs, given that Foxconn is assembling the iPhone 17 Pro series in India.
Export challenges
China is delaying exports of key capital equipment
Adding to the challenge, China has started delaying or blocking exports of key capital equipment, machinery critical to iPhone manufacturing. Industry executives have warned of increasing disruptions due to the slowdown in tool shipments. Despite these hurdles, Foxconn is pushing ahead with its expansion plans in India. A major new facility in Bengaluru is set to start operations soon, while the company is hiring 1,000 local employees by mid-July.