Assembly Interrupted: Foxconn Recalls Chinese Workers from India, Disrupting Apple’s Local Expansion

In a development that could complicate Apple’s manufacturing ambitions in India, Taiwanese electronics giant Foxconn has halted the rotation of Chinese workers to its iPhone assembly plants in Tamil Nadu and Karnataka. The move, reportedly influenced by Chinese government restrictions, has also delayed shipments of specialized equipment—raising concerns over production continuity and geopolitical tensions.

 

Here’s a detailed breakdown of the disruption and its broader implications.

 

Key Highlights of the Operational Shift

 

•⁠  ⁠Foxconn has stopped sending new Chinese workers to its Indian factories and is recalling those currently stationed there  

•⁠  ⁠Taiwanese personnel are being deployed as replacements, though their numbers remain limited  

•⁠  ⁠Shipments of critical manufacturing equipment from China to India have been paused, affecting production timelines  

•⁠  ⁠The disruptions impact Foxconn’s facilities in Tamil Nadu and Karnataka, which collectively employ around 50,000 workers  

 

Strategic Context and Apple’s India Pivot

 

•⁠  ⁠Apple began shifting iPhone production to India in 2019, initially focusing on older models  

•⁠  ⁠The Tamil Nadu plant now manufactures advanced models like the iPhone 16 Pro and iPhone 15  

•⁠  ⁠Foxconn has invested over $1.4 billion in India and is building a Rs 25,000 crore mega facility near Doddaballapur, Karnataka  

•⁠  ⁠The latest disruptions threaten Apple’s goal of diversifying its supply chain away from China  

 

Geopolitical Undercurrents and Technology Dependence

 

•⁠  ⁠Sources suggest the Chinese government is blocking both worker deployments and equipment exports to India  

•⁠  ⁠India currently lacks the capability to produce certain specialized machinery required for iPhone assembly  

•⁠  ⁠The situation underscores India’s dependence on Chinese manufacturing inputs despite its push for self-reliance  

 

Market Impact and Forward Outlook

 

•⁠  ⁠If the suspensions persist, Apple’s plans to scale next-gen iPhone production in India could face delays  

•⁠  ⁠Foxconn is reportedly ramping up production in China to offset the disruption  

•⁠  ⁠Analysts warn that escalating India-China tensions may further complicate supply chain diversification strategies  

 

As Foxconn recalibrates its workforce and logistics, the episode serves as a reminder that global manufacturing ambitions are often shaped as much by diplomacy as by design.

 

Sources: Bloomberg, Financial Express, Hindustan Times, Trak.in, January–July 2025