Foxconn among electronics makers asked to recall Chinese workers from India: Sources

In a major blow to Apple Inc.’s manufacturing push in India, Chinese employees of electronic companies like Foxconn have been asked to return to their home country, although no official statement or announcement has been made regarding this, Zee Business learned from sources. The development comes at a time when Apple is on track to ramp up the production of its next flagship smartphone, iPhone 17.

The industry remains free to hire employees from any country, but managements must carefully determine the best strategies to retain and manage talent effectively, sources told Zee Business. 

To address the current challenges, companies are exploring alternatives by sourcing skilled workers from countries like Taiwan. 

Meanwhile, the government is actively supporting these efforts by focusing on solutions such as identifying and training local talent, according to sources. 

Officials are learned to be reviewing the situation regarding the return of Chinese personnel from Indian electronics units.

Why is Foxconn, Apple’s biggest iPhone assembler, reportedly sending Chinese workers back home?

The move by companies like Foxconn follows a broader trend by Chinese authorities to restrict the movement of technology, expertise, and equipment out of the country.

Earlier this year, Beijing reportedly informally urged regulatory agencies and local governments to limit such transfers to countries like India and Southeast Asia.

Apple CEO Tim Cook has on many occasions lauded the skill and expertise of Chinese assembly workers, highlighting that this is the key reason — not just more favourable costs — for setting up the majority of Apple’s production in the country. 

Foxconn is in the middle of building a new iPhone plant in southern India, and Apple has been accelerating efforts to shift more production out of China due to US-China trade tensions and rising tariffs under the Biden and Trump administrations. 

Although the removal of Chinese workers from India may not impact the quality of production in Indian operations, it may hurt efficiency on the assembly lines, say experts.  

India now produces roughly one-fifth of global iPhone output.

The iPhone maker's India unit is expected to assemble the majority of iPhones for the US market by 2026.

Meanwhile, China-India relations remain fraught, with lingering border disputes and mutual trade restrictions still in place. While China continues to impose export restrictions on key products like fertilisers to India, India continues to prohibit Chinese apps like TikTok and restrict visas.