Apple's effort to expand iPhone production in India has encountered a setback as Foxconn has recalled hundreds of Chinese engineers and technicians from its Indian factories, Bloomberg reports.
According to people familiar with the matter who spoke to Bloomberg, Foxconn has been sending home a large number of Chinese workers previously stationed at its iPhone manufacturing facilities in southern India. The process began approximately two months ago, and more than 300 Chinese staff have now departed.
These individuals were primarily engineers and technicians responsible for supporting operations on-site, many of whom played a central role in training local Indian workers and optimizing production processes. Taiwanese support personnel remain in India, one source said.
Foxconn is Apple's largest iPhone assembler and has led much of the company's manufacturing expansion into India. The decision to withdraw Chinese staff comes at a critical time, as Apple and its partners prepare to ramp up production of the iPhone 17. Foxconn is also currently constructing a new production facility in southern India.
The specific reason for the recall of the personnel is not known, but Bloomberg suggests that it aligns with the wish of Chinese authorities to impose tighter controls on the transfer of technology, labor, and equipment to India and Southeast Asia, as Chinese companies face growing pressure from global clients to diversify production outside China.
Apple CEO Tim Cook has previously highlighted the expertise of China's assembly workforce as a core reason why the country remains central to Apple's supply chain. While the return of Chinese engineers from India is not expected to significantly impact the quality of iPhones produced there, one source told Bloomberg that the absence of experienced Chinese staff is likely to reduce operational efficiency on the assembly lines.
Foxconn continues to manufacture the majority of Apple's iPhones in China. Whether Indian facilities can maintain Apple's stringent quality and efficiency standards without the direct involvement of Chinese engineers remains to be seen.
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