Foxconn Recalls Chinese Staff From India, Likely to Slow Apple’s Production Plans
Foxconn Technology Group has asked hundreds of Chinese engineers and technicians to return home from its iPhone manufacturing facilities in India, a move that could potentially derail Apple Inc.’s efforts to expand its production footprint in the country, according to a Bloomberg report.
According to the report, the withdrawal began about two months ago, and over 300 Chinese employees have since left their posts at Foxconn’s key plant in southern India, where the bulk of India-assembled iPhones are produced.
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The report added that support staff from Taiwan have been sent in to manage operations in their absence.
The absence of experienced Chinese personnel is expected to slow the training of Indian workers and delay the transfer of key manufacturing knowledge, potentially raising production costs and affecting assembly line efficiency, though not the quality of the output, insiders noted.
Neither Foxconn nor Apple has officially commented on the developments.
The timing of the pullback is significant, coming just as Apple was preparing to move the entire assembly of iPhones sold in the United States to India as early as next year. While Apple currently has no iPhone production in the US, around 40 million units are assembled annually in India, roughly 15% of its global output, with plans to increase that share substantially.
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The development also follows reports earlier this year that Chinese officials had verbally urged regulatory agencies and local governments to limit technology transfers and exports to India and Southeast Asia, in an apparent attempt to stem the shift of manufacturing away from China.
Foxconn’s Indian plant plays a critical role in Apple’s diversification strategy, alongside suppliers like the Tata Group, which now controls both Wistron Corp. and Pegatron Corp.’s local operations.
