Apple ramps up iPhone 17, Foxconn pulls more Chinese engineers out of India: Report

Foxconn, Apple’s biggest iPhone assembler, has recalled approximately 300 Chinese engineers from its Yuzhan Technology unit in India, local media reported.

This marks the second such withdrawal in recent months, as per Business Today.

This move, which involves engineers working on enclosures and display modules for older iPhone models, could potentially disrupt Apple’s efforts to localise its supply chain in India as it ramps up production for the iPhone 17 series.

The Yuzhan plant, which only recently began operations, is not yet involved in iPhone 17 production, the report added.

The recall aligns with reported pressure from Beijing to curb technology transfers and equipment exports to India and Southeast Asia, potentially to slow the shift of manufacturing away from China.

Indian media sources, including The Economic Times, note that Foxconn informed the Indian government of the recall, citing instructions to send back all Chinese expat employees "with immediate effect".

The company has reportedly mitigated the impact by deploying Taiwanese engineers and converting Chinese-language machinery to English-operated systems.

Despite these efforts, the withdrawal could affect assembly line efficiency and the mass training of local workers, critical for Apple’s goal to produce 60 million iPhones in India in 2025, up from 35-40 million in 2024-25.

Leaked reports, however, suggest minimal immediate disruption, with one source indicating Foxconn’s proactive measures, such as sourcing engineers from Taiwan and other regions, should keep iPhone 17 production on track.

However, the broader context of geopolitical tensions, including China’s strategic restrictions and India’s push to become a global manufacturing hub, raises concerns about long-term impacts on Apple’s supply chain diversification.

Apple is increasingly relying on local partners like Tata Group, which has become the only Indian iPhone assembler, to offset these challenges.

Social media posts reflect similar sentiments, highlighting the recall as a potential "setback" for Apple’s India expansion.

These claims, however, remain inconclusive without official confirmation from Foxconn or Apple, which is expected to launch the iPhone 17 series in September.