Apple Inc.’s efforts to accelerate its manufacturing footprint in India have encountered a fresh hurdle as its key partner, Foxconn Technology Group, recalled about 300 Chinese engineers from a factory in Tamil Nadu, reported Bloomberg.
The move highlights the challenges of diversifying iPhone production away from China, even as the company prepares to roll out its next-generation iPhone 17 lineup from India.
Engineers recalled from Tamil Nadu facility
The withdrawals took place at a facility run by Yuzhan Technology, a Foxconn component subsidiary located in southern India.
The plant, which only began production a few months ago, manufactures enclosures and display modules for older iPhone models.
According to people familiar with the matter, Foxconn has started flying in Taiwanese engineers to replace the departing staff.
This is the second instance in recent months of Foxconn sending Chinese staff home from its Indian operations.
In July, the company also requested hundreds of Chinese engineers and technicians to return from its iPhone factories in the country.
The reasons for the latest recall remain unclear, but it underscores the reliance Apple still has on Chinese expertise to sustain production quality for precision-engineered products such as iPhones.
China’s regulatory pressure and supply chain influence
The development comes against a backdrop of shifting geopolitical and regulatory dynamics.
Earlier this year, Beijing reportedly encouraged regulators and local governments to restrict technology transfers and equipment exports to India and Southeast Asia.
Such measures are seen as attempts to limit the migration of high-value manufacturing capabilities out of China.
Analysts note that the continued dependence on Chinese technicians illustrates the complexity of transferring Apple’s tightly integrated supply chain.
Though India is increasingly central to Apple’s strategy, Chinese suppliers and engineers remain critical in the assembly process, particularly for older iPhone models still in production.
For the immediate term, Apple can offset disruptions by importing displays and leaning on other Indian suppliers for components like enclosures.
However, the absence of experienced engineers may slow down the company’s drive to localise production, raising concerns about potential bottlenecks.
Apple’s push for localisation in India
Apple has consciously chosen to expand its network of Indian suppliers rather than introducing significant Chinese partners into the country.
One of its most prominent partnerships is with the Tata Group, which has emerged as the only Indian assembler of iPhones.
This strategy reflects Apple’s broader objective of reducing reliance on China while building up manufacturing capabilities in South Asia.
Despite progress, Indian suppliers still face challenges in matching the scale and efficiency of their Chinese counterparts.
As a result, setbacks such as Foxconn’s recall of engineers pose risks to Apple’s near-term ambitions.
A normalisation in India–China relations could ease the strain, benefiting not only Apple but also automakers and other manufacturers navigating similar constraints.
Apple remains committed to its India strategy, with all four versions of the upcoming iPhone 17 set to be produced in the country — a milestone for the South Asian market.
Still, the latest disruption highlights the delicate balance Apple must manage as it navigates geopolitics, supply chain realignment, and the technical demands of producing its flagship devices.
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