Foxconn Technology Group has reportedly recalled several hundred Chinese engineers and technicians from its iPhone manufacturing plants in southern India.
According to a Bloomberg report published Wednesday, the move poses a potential setback to Apple Inc.'s ongoing efforts to diversify its production away from China.
The repatriation process began roughly two months ago and has so far seen over 300 Chinese employees sent back to China.
One source familiar with the matter told Bloomberg that Taiwan now makes up the majority of Foxconn’s foreign workforce in India. The precise reasons behind the sudden withdrawal remain unclear.
This development follows earlier reports suggesting that Chinese authorities had issued informal guidance to regulators and local governments, urging them to slow down technology transfers and restrict the export of equipment to countries like India and those in Southeast Asia. The reported effort appears aimed at retaining advanced manufacturing capabilities within China amid growing global trade tensions and supply chain shifts.
The timing of the pullout is crucial for both Foxconn and Apple.
Foxconn, Apple’s top iPhone assembler, saw its India revenue more than double in FY25, crossing the $20 billion mark, according to an April report by PTI. The company also significantly ramped up its Indian workforce by over 65%, employing nearly 80,000 people as it expanded local operations.
Apple is simultaneously accelerating its push to lessen its reliance on Chinese manufacturing.
The tech giant aims to produce the majority of iPhones sold in the U.S. from India by the end of 2026. Achieving this ambitious target would require Apple to nearly double its existing production capacity in the country. This shift has become more urgent following China’s COVID-19 lockdowns and the broader geopolitical instability affecting global supply chains.
Despite the staff recall, Apple’s manufacturing outlook in India remains optimistic.
Government sources have indicated that Apple’s India operations will stay on a growth trajectory. India is now a key global hub for smartphone exports, with Union Minister Ashwini Vaishnaw revealing in April that mobile phone exports surpassed ₹2 lakh crore in FY25 - ₹1.5 lakh crore of which came from iPhone shipments alone.
Foxconn is also pushing forward with its investments in India. The company is currently constructing its second-largest facility outside China in Devanahalli, near Bengaluru. With a projected investment of $2.8 billion (approximately ₹25,000 crore), the new plant is expected to create over 40,000 jobs and support Apple’s expanding manufacturing needs in the region.