Foxconn recalls Chinese engineers from India, clouding Apple’s iPhone expansion plans: Report

The recall, which began about two months ago, has already seen more than 300 Chinese workers leave iPhone production facilities in southern India, sources told Bloomberg on condition of anonymity.

While Foxconn has not provided a reason, the development comes amid mounting pressure from Beijing to curb technology transfers and skilled labour exports to countries like India and Southeast Asia.

Earlier this year, Chinese authorities reportedly gave verbal directives to restrict the outflow of tech and equipment — a veiled push to deter supply chain migration from China.

Though Apple declined to comment, and Foxconn hasn’t issued a statement, the shift comes at a critical juncture.

Apple and its partners are gearing up to ramp up production of the iPhone 17 in India, while Foxconn is building a new plant in the region as part of its broader push to diversify outside China.

Insiders say the withdrawal of experienced Chinese staff, who have played a key role in training Indian workers, is unlikely to compromise product quality — but it could reduce efficiency on the factory floor.

Apple CEO Tim Cook has repeatedly praised the skill of Chinese assembly teams, suggesting that know-how, rather than labour costs alone, underpins the company's continued reliance on China.

India began assembling iPhones at scale only four years ago, yet already accounts for about 20% of global iPhone output.

Apple has been eyeing India to produce the majority of its iPhones for the U.S. market by 2026, a plan criticised by President Donald Trump, who insists Apple should manufacture its products domestically.

But making iPhones in the U.S. remains commercially impractical due to high labour costs.

Moreover, any effort to replicate Apple’s precision-driven Chinese operations in the U.S. would likely stall without access to Chinese engineers, making Beijing’s latest moves even more consequential.

Foxconn’s pullback reflects a broader trend — as the U.S.-China rivalry deepens, global supply chains are becoming collateral in geopolitical manoeuvring.

India and other Asian countries like Vietnam are racing to seize the manufacturing mantle, but the loss of seasoned Chinese expertise may complicate that path.

Whether this signals a temporary pause or a more entrenched strategic shift remains to be seen — but for Apple’s India ambitions, the turbulence is real.