Foxconn, Apple's main manufacturing partner, has asked more than 300 Chinese engineers and workers to leave its iPhone factories in Tamil Nadu and Karnataka. This is a surprising move. Since the recall started about two months ago, there aren't many Taiwanese workers left on the job, which makes people worry about when Apple will be able to make the iPhone 17.
China's ban on sending talented people abroad is what caused the move
It is said that the move has something to do with China's growing limits on sending workers and technology to competing manufacturing hubs like India and Vietnam. People think that the Chinese government is making it harder for trained workers and advanced technology to leave the country in order to protect its position as a world leader in electronics.
India's role in Apple's supply chain is growing
India has become a key part of Apple's China + 1 growth plan, and the country now makes almost 20% of all iPhones the company makes. India made more than $22 billion worth of iPhones in FY24 alone, which is a huge 60% increase from the previous year.
But the departure of experienced Chinese engineers who helped train Indian workers and make sure Apple's manufacturing standards were met could temporarily slow down work.
Possible Effects on the Production of the iPhone 17
Insiders in the industry say that the quality of the products might not change, but they warn that training times and the output of the assembly line might be slowed down. These worries are especially important now that Foxconn is working harder to get ready for the launch of the iPhone 17.
Foxconn is still investing in India
Even though the setback happened, Foxconn is putting more effort into its business in India. The company is investing billions of dollars to build giant plants near Devanahalli (Bangalore) and Oragadam (Tamil Nadu). The goal is to hire as few Chinese workers as possible by hiring tens of thousands of Indians to work in these sites.
Apple and Foxconn need to change quickly
The sudden departure of Chinese engineers makes people wonder how well Apple's India plan handles risks. To keep up with production schedules, experts say that Foxconn and Apple will have to speed up hiring locally, start upskilling programs, and maybe even bring in skilled workers from other countries.