Foxconn pulls Chinese staff from its plants in India

Taiwanese electronics manufacturing giant Foxconn has asked hundreds of Chinese engineers and technicians working at its iPhone production facilities in India to return home, Bloomberg reported.

The repatriations of Chinese employees started two months ago and could jeopardise Apple’s ambitious plans to expand its manufacturing footprint in India.

About 300 Chinese workers have already left India, leaving mainly support staff from Taiwan to continue operations, the Bloomberg report said, citing people aware of the development.

The reasons behind Foxconn’s decision remain unclear, but increasing regulatory scrutiny from Chinese authorities could have been the reason behind this decision.

Earlier this year, Beijing directed regulators and local authorities to curb tech transfers and equipment exports to India and Southeast Asia to deter Chinese firms from moving production abroad.

Apple has been aggressively growing its production capabilities in India, especially as it prepares to launch the iPhone 17. Apple’s key manufacturing partner, Foxconn, is building a new iPhone plant in southern India.

The removal of skilled Chinese engineers could slow down the training of local Indian workers and delay the transfer of advanced manufacturing technology from China. This, in turn, may disturb Apple’s efforts to diversify its supply chain and reduce its reliance on Chinese manufacturing.