Foxconn, Apple’s primary manufacturing partner, is encountering new challenges in India as China reportedly tightens its grip on the movement of skilled labor and essential manufacturing equipment. The situation highlights a growing tension between India’s ambition to become a global electronics hub and China’s strategic efforts to retain control over key elements of the global supply chain.
Over 300 Chinese engineers and technicians working in Foxconn’s iPhone assembly facilities in southern India have been asked to return to China. This sudden reduction in foreign technical personnel has raised concerns about delays in production processes, especially in areas requiring advanced operational knowledge or training of Indian staff. Although some replacements are being sourced from Taiwan and local talent pools, the immediate impact is being felt in areas of quality control and training.
The recall is seen by industry experts as a calculated measure by Beijing, possibly intended to curb the rapid transfer of critical technology and expertise to India. The move comes at a time when Foxconn has been aggressively expanding its footprint in India, with large-scale investments aimed at diversifying Apple’s production base beyond China.
In addition to the labor issue, there are growing worries about restricted shipments of specialized equipment and spare parts from China. Several Indian electronics manufacturers and suppliers dependent on Chinese capital goods are facing delays and cost escalations. The constraints are making it more difficult for companies to set up or expand production lines, potentially undermining the momentum generated by initiatives like Make in India.
Foxconn’s plans in India remain ambitious. The company has committed over a billion dollars in fresh investments for iPhone assembly and component manufacturing. It has also entered into a joint venture for semiconductor packaging, aiming to deepen its local supply chain integration. However, without consistent access to experienced personnel and critical machinery, these expansion plans may face delays.
The broader implications of this pressure are significant. India is currently producing nearly one-fifth of the world’s iPhones, and Apple aims to shift a substantial portion of its global output to India over the next few years. The success of this strategy depends on uninterrupted operations, skilled labor, and a reliable equipment supply chain—all areas now potentially compromised by geopolitical interference.
For India, this episode underscores the need to reduce dependency on imported technical expertise and machinery. It highlights the urgency of building local capabilities in electronics design, capital goods manufacturing, and workforce development. Policymakers are being urged to provide more support to Indian manufacturers through incentives, easier regulations, and long-term investments in research and development.
Foxconn’s experience serves as a cautionary tale: as India positions itself as a credible alternative to China in electronics manufacturing, it must also prepare for strategic pushback. Strengthening domestic capacity and safeguarding supply chains will be essential to ensuring sustained growth and industrial resilience in the face of global pressures.
