As Apple intensifies its efforts to make India its next big manufacturing hub, a surprising move by China may jeopardize those ambitions. Apple’s largest iPhone manufacturer, Foxconn, which operates major production facilities in Tamil Nadu and Karnataka, is facing a critical workforce challenge. According to multiple reports, China has quietly pulled out over 300 of its engineers and technicians working in Foxconn's Indian factories.
These engineers played a vital role in maintaining the production line, training Indian staff, conducting quality checks, and ensuring smooth automation processes. Most importantly, they were actively involved in preparing for the production of Apple’s upcoming iPhone 17. Their abrupt return to China could potentially slow down the production process, disrupt training programs, and delay the high-tech manufacturing setup that Apple is building in India.
So, why did China take this step?
Industry experts and reports suggest multiple reasons. One key reason is geopolitical strategy. China is reportedly uncomfortable with India rising as a strong competitor in the global electronics manufacturing space. Experts believe that China sees India as a weaker rival and doesn’t want to aid its growth by allowing technical know-how or skilled manpower to strengthen Indian factories. Pulling back engineers could be a way to prevent India from gaining deeper manufacturing capabilities.
A Bloomberg report recently revealed that China’s government has been pressuring its officials and companies to restrict the transfer of skilled labor and advanced technology to India and Southeast Asia. The goal is to keep Chinese manufacturing strength within its borders and prevent countries like India from benefiting through talent transfer.
Another reason cited is India’s tightening of visa rules and increased scrutiny of Chinese firms operating in the country. These regulations may have made it difficult for Chinese engineers to continue working in India, further prompting their return.
Although Chinese workers made up less than 1 percent of the workforce at Foxconn’s Indian factories, they were crucial for operating complex machinery, managing high-tech production, and ensuring international-quality output. Their exit has created a gap that’s not easy to fill overnight.
To cope with this challenge, Foxconn is now bringing in experts from Taiwan and Vietnam and ramping up training programs for Indian employees. However, bridging this expertise gap quickly remains a significant hurdle.
India’s iPhone manufacturing has grown remarkably in recent years. Today, India produces about 20 percent of all iPhones globally — a significant leap from where it started just four years ago. Foxconn recently invested 2.56 billion dollars near Bengaluru with a target of producing several lakh iPhones by December. From March to May 2025 alone, India exported 3.2 billion dollars worth of iPhones, with 99 percent of that going to the United States.
However, with the departure of Chinese engineers, there are concerns that this momentum could slow down. Apple aims to make India its main iPhone production hub for the US market by 2026, but achieving that goal could become more challenging now.
Apple, on its part, has downplayed the impact of the Chinese withdrawal. The company claims that production will remain on track and that the combination of Taiwanese specialists and trained Indian staff will keep operations running smoothly. Yet, experts warn that delays in high-tech manufacturing, rising operational costs, and longer training timelines are likely outcomes of this disruption.
This development is also a wake-up call for India. It highlights the urgent need to build stronger domestic technical capabilities and reduce dependence on foreign expertise. For the 'Make in India' dream to become a global manufacturing success, India must invest in upskilling its workforce and enhancing local innovation.
In summary, China’s move to recall its engineers from India appears to be a strategic push to maintain its dominance in electronics manufacturing. While Apple and Foxconn remain optimistic, the real test lies ahead — in whether India can overcome this disruption and still deliver on Apple’s global ambitions.
Disclaimer:
This article is based on publicly available media reports and expert commentary. It reflects interpretations and assessments subject to change as more information becomes available.
