iPhone manufacturing in India to take a hit: Here's why
What's the story
Foxconn Technology Group has recalled hundreds of its Chinese engineers and technicians from its iPhone factories in India. The move, which started some two months ago, has posed challenges to Apple's manufacturing efforts in the country. Over 300 workers have already returned to China, leaving mostly support staff from Taiwan behind at the facilities.
Uncertainty
China has started restricting tech transfers to India
The reason behind Foxconn's decision to send the workers home remains unclear. Earlier this year, Chinese officials had verbally urged regulatory bodies and local governments to restrict technology transfers and equipment exports to India and Southeast Asia. This was seen as a possible attempt by Beijing to stop companies from relocating their manufacturing operations elsewhere.
Production concerns
Departure of Chinese workers won't affect production quality
Apple CEO Tim Cook had previously praised the skills and expertise of Chinese assembly workers, saying it was the main reason for establishing most of Apple's production in China. While their departure from India won't affect production quality, it may impact assembly line efficiency. The timing is particularly bad for Apple as it gears up to increase iPhone 17 production with its manufacturing partners in India.
Expansion
Foxconn is building a new iPhone plant in India
Despite the current situation, Foxconn has been expanding its assembly operations in India over the past few years. The company is also building a new iPhone plant in south India. Apple has been planning to produce most iPhones for the US in India by late 2026, a move that has drawn criticism from US President Donald Trump.