Big blow to Apple's India manufacturing as Foxconn recalls 300 Chinese staff from India ahead of iPhone 17 rollout due to...

Foxconn, Apple's largest iPhone manufacturer, has called back more than 300 Chinese engineers and technicians to return home from its iPhone factories in India, Bloomberg reported on Wednesday. The move is likely to impact Apple Inc's plans to ramp up production in the country.

Over the last two months, Foxconn's iPhone assembly plants in India have seen the departure of over 300 Chinese workers, according to the international news agency.  Facilities in southern India are impacted by the mass evacuation, leaving only Taiwanese support staff on site.  The reason behind the recall of the Chinese personnel is still unknown.  But Bloomberg said earlier this year that "officials in Beijing verbally encouraged regulatory agencies and local governments to curb technology transfers and equipment exports to India and Southeast Asia," which is interpreted as a ploy to deter businesses from moving their manufacturing out of China.

As part of its larger goal to lessen its reliance on Chinese manufacturing, Foxconn is presently building a new iPhone assembly facility in the area.  Although there might not be any impact on output quality, Bloomberg points out that "assembly line efficiency could suffer during the critical ramp-up period for next-generation iPhone production."

It is said that Beijing's strategy goes beyond limiting staff mobility.  Limiting the export of specialized machinery and technical know-how essential to the production of high-end electronics is another aspect of it. According to Bloomberg, "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."

The significance of Chinese technological talent in the iPhone supply chain has been emphasized by Apple CEO Tim Cook in the past.  "The irreplaceable expertise of Chinese assembly workers,” he noted, is not simply about cost advantages but “fundamental to maintaining production standards."

 India now produces about 20% of the iPhone worldwide, which is remarkable given that large-scale production only started there four years ago.  By the end of 2026, Apple hoped to have the majority of its iPhones shipped to the US made in India.  However, that timescale might be delayed by the present talent shortage.