Report: Apple's India Manufacturing Dream in Jeopardy Over Exodus of Chinese Workers

[MacRumors]

Apple's effort to expand iPhone production in India has encountered a setback as Foxconn has recalled hundreds of Chinese engineers and technicians from its Indian factories, Bloomberg reports.

According to people familiar with the matter who spoke to Bloomberg, Foxconn has been sending home a large number of Chinese workers previously stationed at its iPhone manufacturing facilities in southern India. The process began approximately two months ago, and more than 300 Chinese staff have now departed.

These individuals were primarily engineers and technicians responsible for supporting operations on-site, many of whom played a central role in training local Indian workers and optimizing production processes. Taiwanese support personnel remain in India, one source said.

Foxconn is Apple's largest iPhone assembler and has led much of the company's manufacturing expansion into India. The decision to withdraw Chinese staff comes at a critical time, as Apple and its partners prepare to ramp up production of the iPhone 17. Foxconn is also currently constructing a new production facility in southern India.

The specific reason for the recall of the personnel is not known, but Bloomberg suggests that it aligns with the wish of Chinese authorities to impose tighter controls on the transfer of technology, labor, and equipment to India and Southeast Asia, as Chinese companies face growing pressure from global clients to diversify production outside China.

Apple CEO Tim Cook has previously highlighted the expertise of China's assembly workforce as a core reason why the country remains central to Apple's supply chain. While the return of Chinese engineers from India is not expected to significantly impact the quality of iPhones produced there, one source told Bloomberg that the absence of experienced Chinese staff is likely to reduce operational efficiency on the assembly lines.

Foxconn continues to manufacture the majority of Apple's iPhones in China. Whether Indian facilities can maintain Apple's stringent quality and efficiency standards without the direct involvement of Chinese engineers remains to be seen.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Report: Apple's India Manufacturing Dream in Jeopardy Over Exodus of Chinese Workers

 

[Kissmo1980]

Well, this is going to be fun - My answer to the question is: No, they won’t be able.

 

[ApostolisApo]

NoT thAt hARd to BuILd a pHONe!

Just look at how Trump Mobile will be entirely produced in the US of A.
Oh, wait...

 

[jlc1978]

It makes sense for China to protect it’s manufacturing capabilities by not allowing knowledge transfer to future competitors. Foxconn has no say in the decision if the CCP. says to leave India.It also sends a message to India to play ball or we will impact your growth ambitions. India will have to step up its game; which in the long run is good for tehm since it weaken’s China’s hand.

It also warns Apple that China can severely impact their operations; which also is good for rteh long terma s Apple looks for alternatives to weaken China’s power over its production capacity.

 

[Plutonius]

In the end, Foxconn is a Chinese company.

 

[DaveTheRave]

India is super bureaucratic. Good luck with them getting their **** together to pull this off.

 

[WarmWinterHat]

In the end, Foxconn is a Chinese company.

Foxconn is a Taiwanese company, not Chinese. Founded and headquartered in New TaiPei, Taiwan.

 

[indychris]

I'm guessing that the decision to recall top engineers goes higher than simply Foxconn.

 

[ifxf]

I am wondering about the quality of the phones assembled in India. Will Apple give an indication of the assembly location on a phone’s box?

 

[TechWhisperer]

I wouldn’t put my money on India right now. Another sweatshop the world doesn’t need. And didn’t Trump push Timothy to bring iPhone manufacturing back to the US? Might be time to reconsider that India strategy.

 

[xizdun]

Okay, so China doesn’t want the brain drain and knowledge transfer.

Not like India lacks the talent to make it happen. Plenty of brilliant minds in India, just have to pay them what they’re worth to attract them (at least until the dust has settled)—and Apple can afford it.

Sure, India is not a communist/socialist/one-party country and not as disciplined as China, so the ramp-up will take a while.

Apple need not assemble all of its devices/iPhones in one country. Apple can surely assemble some iPhones closer to the U.S. for American customers and absorb/offset the additional costs—Apple can afford that. Shareholders won’t like it, but it’s the right thing to do.

 

[one more]

And didn’t Trump push Timothy to bring iPhone manufacturing back to the US?

He did indeed. He just could not find lines of good Americans signing up to spend long hours assembling iPhones at 3$ per hour. What a pity.

 

[farqueue]

Foxconn a Taiwanese company, not Chinese. Founded and headquartered in New TaiPei, Taiwan.

You do realize that “Taiwan, is officially known as the Republic of China (ROC)” 😂

Sauce: https://en.wikipedia.org/wiki/Taiwan

 

[lkrupp]

Foxconn a Taiwanese company, not Chinese. Founded and headquartered in New TaiPei, Taiwan.

Foxconn’s factories are on the mainland and therefore beholding to the CCP.

 

[lkrupp]

You do realize that “Taiwan, is officially known as the Republic of China (ROC)” 😂

Sauce: https://en.wikipedia.org/wiki/Taiwan

And Taiwan was formerly known as Formosa, named by Portuguese explorers in the 1600s.

 

[MrMaxwell]

USA skill transfer to China ✅
China skill transfer to India 🚫

Well played China well played...

 

[sunapple]

I did not realize China could be so controlling. Apple must be surprised as well. Oh well, back to trusty old China then. Let’s think of ways that would work. Why not move R&D and headquarters there as well, might be easy having it next to production.

 

[WarmWinterHat]

Foxconn’s factories are on the mainland and therefore beholding to the CCP.

The largest locations are in China, where they have 12 factories, but they have over 130 factories spread across a couple dozen countries.

You do realize that “Taiwan, is officially known as the Republic of China (ROC)” 😂

Sauce: https://en.wikipedia.org/wiki/Taiwan

The government, and the citizens, of Taiwan, do not recognize themselves as part of China, hence the constant threat of invasion by China and their annoyance at the US for sending Taiwan arms and defense weapons.

 

[zarmanto]

USA skill transfer to China ✅
China skill transfer to India 🚫

Which demonstrates two key principles:

• Never single-source anything important, and
• Never rely upon China or Russia for anything important.

Both are potential paths to total failure. Hopefully Apple retained enough US based engineering skill to train up staff at their Indian Foxconn branch... but with this CCP interference, it sounds an awful lot like they're also going to have to eventually divest themselves entirely of their Foxconn relationship, and work with an Indian company to stand up the necessary facilities.

 

[anthonymoody]

The irony of China protecting IP.

 

[Nekronos]

In the end, Foxconn is a Chinese company.

It is actually Taiwanese.

 

[MacCurry]

AAPL has invested over $550B ($55B/year for the last 10 years) and hundreds of billions more in China for manufacturing. China has become a strategic rival to the US & supporter of international terrorism due to a big part played by AAPL's investment. AAPL knew what the Chinese government was doing in leveraging high-end manufacturing to all other industries. AAPL's investment into China is more than the US put into Europe post-WWII with the Marshall Plan.

 

[Jetson]

Obama turned to Jobs and asked: "What would it take to make iPhones in the United States?" Jobs's response was blunt and unwavering: "Those jobs aren't coming back," a guest at the dinner told The New York Times. - February 2011

 

[reyesmac]

Stop being cheap with your training staff. Instead use more expensive staff from other countries and develop new ways to communicate and manage people remotely. Use all that AI and glasses and translation tech to make glasses people could wear over there and get instructions from AI and remote instructors. Do your meetings with the vision pro and so on. It may be new now but this is how people are going to run companies from other countries someday. The tech to do it is there. Its just someone has to put it all together and utilize it.

 

[trusso]

You made a deal with the devil, Tim.

And by devil, I don't mean China*, but economic and political forces that were far beyond anything you could imagine. In your hubris you've thought you could control it, but you can't.

*Most Chinese, like most Americans, or people of any nationality, just want to live in peace. It's the folks at the top who feel the need to agitate and grab hold of more money and power than one person could ever need.