Foxconn Recalls Chinese Engineers from India, Raising Concerns Over Apple’s iPhone Production Plans

Foxconn (TW:2317, SS:601138), the key Apple Inc. (NASDAQ:AAPL) supplier, has recalled over 300 Chinese engineers from its iPhone assembly facilities in India, Bloomberg reported, citing sources familiar with the matter. The sudden move threatens to disrupt Apple’s plan to ramp up production in the region, especially ahead of the iPhone 17 launch.

The recall took place gradually over the past two months, leaving only a few Taiwan-based support personnel on-site. The exact reason behind the decision remains undisclosed, but it follows a broader trend of China subtly tightening controls on the outflow of technical talent and advanced manufacturing knowledge to countries like India and Vietnam.

This development comes at a crucial time for Apple, which aims to shift the bulk of its iPhone production for U.S. markets to India by late 2026. Foxconn is also constructing a new production facility in southern India as part of the broader push to diversify its manufacturing base outside China. However, with fewer Chinese experts available to train local Indian workers, the speed and efficiency of the technology transfer could be compromised.

According to Bloomberg, Foxconn notified Indian authorities of the staff withdrawals but did not offer an official explanation. Industry analysts fear the move could slow Apple’s aggressive India expansion strategy, which has been a key part of its supply chain resilience plan amid U.S.-China trade tensions.

President Donald Trump has previously criticized Apple’s India manufacturing strategy, arguing that American tech products should be made domestically.

The situation underscores the geopolitical complexities Apple faces as it attempts to decouple from China while scaling operations in alternative markets like India. The potential delay in workforce training could impact Apple’s near-term production targets.