Foxconn Technology Group has ceased deploying Chinese workers to its Apple iPhone factories in India, opting instead for Taiwanese personnel. The company is also recalling its Chinese employees stationed at Indian plants.
Reports indicate that shipments of specialized manufacturing equipment from China to India have been delayed. This disruption could significantly impact iPhone assembly at Foxconn’s Tamil Nadu and Karnataka factories, which together employ around 50,000 workers.
China’s Role in the Suspensions
Sources suggest the Chinese government is blocking both worker deployments and equipment exports to India. The delay stems from India’s reliance on specialized machinery that it cannot yet manufacture domestically. Experts warn that continued disruptions could hinder Apple’s plans to make next-generation iPhones in India.
Foxconn’s Growing Presence in India
Since beginning iPhone production in Tamil Nadu in 2019, Foxconn has rapidly expanded its Indian operations. By 2024, the company invested over $1.4 billion in the country, generating business exceeding $10 billion. Its Tamil Nadu plant alone employs approximately 40,000 workers and produces iPhone 16 Pro and iPhone 15 models.
Challenges to Apple’s Diversification Strategy
Apple’s effort to reduce dependence on Chinese manufacturing is facing hurdles. Despite Foxconn’s increasing investment in India, China’s actions to limit worker and equipment exports highlight the challenges of diversifying supply chains.
“China may take steps to prevent India from challenging its status as a global manufacturing hub,” said Harsh V. Pant, a foreign policy expert at the Observer Research Foundation.
Implications of India-China Economic Tensions
The latest developments underscore the broader economic rivalry between China and India. Analysts predict that tensions will escalate, affecting manufacturing, trade, and investment. Foxconn’s ongoing efforts to bolster its Indian facilities may face further challenges as geopolitical dynamics play out.
Conclusion: A Test for India’s Manufacturing Ambitions
Foxconn’s pivot away from Chinese workers and equipment signifies a pivotal moment for India’s aspirations to become a global manufacturing powerhouse. While the disruptions pose immediate challenges, they also highlight India’s need to build self-reliance in advanced manufacturing technologies to sustain long-term growth.
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