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- Foxconn Recalls 300+ Chinese Engineers from India, Raises Concerns Over iPhone 17 Production
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China is still dominated by the iPhone manufacturing. Its share in the company’s global iPhone shipment in 2024 was about 28%.
The Government of India has responded to the sudden recalling of more than 300 Chinese engineers and technicians from the iPhone maker Foxconn in India.
The government has said that the situation is being closely monitored. Apple has enough engineers to run work without affecting production.
According to a PTI report, a government official said Apple has options and they can face this challenge. The case is mainly between Apple and Foxconn.
This statement comes at a time when Apple is preparing to make iPhone 17 in India. Its trial production is likely to begin in July. Mass production will be done in August.
According to sources, China has directed to withdraw engineers and technicians to influence India’s manufacturing sector.
Chinese engineers handle high-tech assembly lines in India
Chinese engineers were working to train Foxcon’s high-tech assembly line, factory design and Indian employees.
For this, the Government of India had also provided visa facility for Chinese engineers, so that there is no obstruction in production.
The departure of Chinese workers may slow down in factories
Sources said, “The number of Chinese employees is less than 1%, but they play an important role in important operations like production and quality management. The work in factories may slow down with the Chinese government’s instructions to withdraw their citizens.
- Lastly, China also stopped supply of rare economy magnets used in electric vehicles (EV) and electronics. In such a situation, both these steps of China are being seen as a strategy to weaken the growth of India’s manufacturing sector.
- China is perhaps adopting a Tit-for-Tat strategy with India, as their corporate workers have faced a lot of difficulties in getting a business visa. An industry source said, “We are planning to send a report to the government on this matter.”
An employee of a Foxconn unit in India. The government is trying to promote investment in its manufacturing sector.
China’s dominance on iPhone manufacturing
China is still dominated by the iPhone manufacturing. Its share in the company’s global iPhone shipment in 2024 was about 28%.
Four years ago India started iPhone assembling
India began to assemble a large scale iPhone 4 years ago, and now it makes the fifth of global production. Apple plans to make most of the iPhones for the US in India by the end of 2026, which has been criticized by US President Trump.
Why Apple’s focus on India?
- Supply chain diversification: Apple wants to reduce its dependence on China. Problems such as Geopolitical Tension, Trade Dispute and Kovid-19 lockdown felt that it is not right to depend more in one area. In this context, India is proving to be a low risk option for Apple.
- Cost Advantage: India provides labor at a lower cost than China, which makes it more attractive. In addition, manufacturing at local level helps the company to avoid high import costs on electronics.
- Government incentive: India’s Make in India Insiative and PLI schemes provide financial assistance to companies to increase manufacturing. These policies have encouraged Apple partners like Foxconn and Tata to invest more in India.
- Rising Market Possibility: India is one of the fastest growing smartphone markets in the world. Local production helps Apple to meet this demand more, as well as its market share, which is currently about 6-7%.
- Opportunity for export: Apple exports its 70% iPhone made in India, which gives the benefit of India’s low import tariffs than China. In 2024, iPhone exports from India reached $ 12.8 billion (about ₹ 1,09,655 crore). It is expected to increase further in the coming times.
- Skilled Workforce and Infrastructure: India’s Labor Force is behind China in terms of experience, but it is still improving a lot. Apple’s Foxconn -like partners are training employees to meet the production needs and expand facilities like plants like $ 2.7 billion (₹ 23,139 crore) in Karnataka.
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