Taiwanese electronics manufacturing giant Foxconn has paused new work rotations for its Chinese employees at its Apple iPhone factories in India, deploying Taiwanese workers instead, as per a report by Rest of World. The report also stated that Chinese workers currently stationed at Indian plants are being recalled, signaling potential new economic tensions between China and India.
Citing sources familiar with Foxconn’s India operations, the report noted that shipments of specialised manufacturing equipment intended for India have also been delayed in China. The disruptions could impact iPhone assembly lines at Foxconn’s factories in Tamil Nadu and Karnataka, which collectively employ around 50,000 workers.
“Currently, the equipment and manpower are not allowed to go over (to India),” a source was quoted as saying. “And India doesn’t have the technology to produce the equipment.”
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The report attributed the suspension of worker rotations and equipment shipments to the Chinese government. Foxconn did not respond to a questionnaire from FE seeking clarity on the situation and its potential impact on operations in India.
If the suspensions persist, they could hinder Apple’s efforts to develop next-generation iPhones in India, a key part of its broader manufacturing strategy. Foxconn, which began producing iPhones in Tamil Nadu in 2019 with older models, has since ramped up its manufacturing capabilities in the state and expanded to Karnataka and Telangana.
Foxconn chairman Young Liu recently revealed that the company has invested over $1.4 billion in India till 2024, with its business from the country exceeding $10 billion. The Tamil Nadu plant, employing about 40,000 workers, currently produces latest models like the iPhone 16 Pro and iPhone 15.
Foxconn is also investing Rs 25,000 crore to establish a massive iPhone assembly and electronics manufacturing facility near Doddaballapur in Karnataka. Dubbed ‘Project Elephant’, this facility is set to be Foxconn’s largest outside Taiwan and is expected to employ over 50,000 workers.
However, the Rest of World report highlighted that production in India still relies on Chinese workers and a smaller number of Taiwanese expatriates,
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