Apple's India Ambitions Hit a Wall as Foxconn Sends 300+ Chinese Engineers Home
China delaying critical equipment exports, threatens Apple's goal to significantly boost Indian manufacturing

Apple's strategic push into the Indian market appears to have encountered a significant roadblock due to Foxconn's move to send Chinese engineers home from India operations, raising questions about the pace and ease of Apple expansion plans in the subcontinent.
Foxconn, the manufacturing major, has sent over 300 Chinese engineers and technicians home from its facility in India thus impacting Apple's drive to increase iPhone manufacturing in the country.
A Direct Hit to Apple's India Scale-Up
Sources indicate this action will also impact the production and export schedules for Apple's forthcoming iPhone 17 series, especially the Pro models, which are Foxconn's responsibility.
This situation is further complicated by China's reported delays or blocks on the export of essential capital equipment needed to expand Apple's operations in India.
'Apple's speed of scale-up will be impacted in India, which is a big problem. It is a government-to-government issue. MeitY was already informed about the issue, which started around two months back. Authorities are already aware of the issue...companies or industry stakeholders can't be involved directly in this issue,' said MoneyControl, quoting a well placed source.
The industry has highlighted both the recall of Foxconn's Chinese personnel from its South Indian factories and the growing problems stemming from delays in importing vital capital equipment, including the specific tools and machinery necessary for iPhone production, from China.
China's Strategic Roadblocks
This timing is crucial. Foxconn, Apple's primary contract manufacturer in India, is undergoing significant expansion, with a substantial new facility in Bengaluru slated to become operational shortly.
This particular site is central to Apple's strategy for exporting iPhones from India. Furthermore, Foxconn is reportedly onboarding 1,000 additional local staff by mid-July, which would increase its workforce in India to approximately 40,000.
In a separate development, Foxconn has begun manufacturing Apple's AirPods in Hyderabad for export.
Impact on iPhone 17 Production
A source indicated that the reduction in staff could interrupt the production and export schedules for Apple's forthcoming iPhone 17 series, especially the Pro models, which are Foxconn's responsibility.
The Taiwanese manufacturer began trial production of these new models earlier this year. Tata Electronics is assisting with trial runs for components, such as metal casings.
It is worth noting that the Cupertino-based tech giant aims to launch the iPhone 17 series worldwide in mid-September.
The company has been striving to significantly increase production of the highly sought-after Pro models in India, aiming to both meet growing local demand and supply customers in the US amid current geopolitical instability. By 2026, Apple is expected to increasingly rely on India to meet the majority of its iPhone requirements for the US market.
The Geopolitical Undercurrent
The source said that Foxconn is likely to bring in more Taiwanese and Vietnamese workers to replace those heading back to China. They added, 'There won't be any major impact on Apple as they have the financial muscle. The bigger challenge remains capital equipment along with rare earth material for the company and for the industry at large.'
Foxconn has asked hundreds of Chinese engineers and technicians to return home from its iPhone factories in India, dealing a blow to Apple’s manufacturing push in the South Asian country https://t.co/PIpl3DK0vk pic.twitter.com/jIJ9TDrA6I
— Bloomberg TV (@BloombergTV) July 2, 2025
Bloomberg reported on 2 July that Foxconn has reportedly directed its suppliers to adapt specific machinery, configuring it for English-language operations, as many current systems are set to Chinese. This modification aims to enhance efficiency for Indian engineers and factory workers who use the equipment.
Wider Concerns for India's Electronics Manufacturing Sector
A third individual raised concerns extending beyond Apple: 'Small manufacturers across the industry will face issues in India, and the electronics component scheme will suffer since Chinese executives will be needed for technology know-how and machine installations, especially for camera and display module categories where China has control over the ecosystem.'
Since the beginning of 2024, Chinese authorities have been reportedly restricting the export of advanced manufacturing tools and technology to India. This is widely seen as an attempt to slow the relocation of global supply chains away from China.
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