Foxconn recalls more Chinese engineers from India in setback to Apple: report

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Apple Inc.’s efforts to accelerate its manufacturing footprint in India have encountered a fresh hurdle as its key partner, Foxconn Technology Group, recalled about 300 Chinese engineers from a factory in Tamil Nadu, reported Bloomberg. The move highlights the challenges of diversifying iPhone production away from China, even as the company prepares to roll out its next-generation iPhone 17 lineup from India.Engineers recalled from Tamil Nadu facilityThe withdrawals took place at a facility run by Yuzhan Technology, a Foxconn component subsidiary located in southern India. The plant, which only began production a few months ago, manufactures enclosures and display modules for older iPhone models. According to people familiar with the matter, Foxconn has started flying in Taiwanese engineers to replace the departing staff.This is the second instance in recent months of Foxconn sending Chinese staff home from its Indian operations. In July, the company also requested hundreds of Chinese engineers and technicians to return from its iPhone factories in the country. The reasons for the latest recall remain unclear, but it underscores the reliance Apple still has on Chinese expertise to sustain production quality for precision-engineered products such as iPhones.China’s regulatory pressure and supply chain influenceThe development comes against a backdrop of shifting geopolitical and regulatory dynamics. Earlier this year, Beijing reportedly encouraged regulators and local governments to restrict technology transfers and equipment exports to India and Southeast Asia. Such measures are seen as attempts to limit the migration of high-value manufacturing capabilities out of China.Analysts note that the continued dependence on Chinese technicians illustrates the complexity of transferring Apple’s tightly integrated supply chain.Though India is increasingly central to Apple’s strategy, Chinese suppliers and engineers remain critical in the assembly process, particularly for older iPhone models still in production.For the immediate term, Apple can offset disruptions by importing displays and leaning on other Indian suppliers for components like enclosures. However, the absence of experienced engineers may slow down the company’s drive to localise production, raising concerns about potential bottlenecks.Apple’s push for localisation in IndiaApple has consciously chose...

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