Apple’s ambitious plan to expand iPhone production in India has encountered a major hurdle as Foxconn, its largest manufacturing partner, has recalled over 300 Chinese engineers and technicians from its Indian factories. The withdrawal, which began about two months ago, primarily affects Foxconn’s southern India plants, where Chinese staff played a crucial role in streamlining assembly and training local workers. Most foreign support staff now remaining in India are from Taiwan, and the reasons for the recall remain officially undisclosed.

Industry observers suggest the move may be linked to Beijing’s recent efforts to restrict technology transfers and equipment exports to India and Southeast Asia, aiming to prevent the outflow of advanced manufacturing capabilities amid global supply chain shifts. This policy shift comes as Apple and Foxconn have been accelerating efforts to diversify production away from China, especially after Covid-19 disruptions and rising geopolitical tensions. The recall comes at a critical time, with Apple planning to nearly double its India output to supply most iPhones sold in the US by 2026.

The departure of these Chinese experts is expected to slow down the training of Indian workers and delay the transfer of advanced manufacturing knowledge, which could lead to higher production costs and reduced assembly line efficiency. While sources indicate that the quality of iPhones produced in India will not decline, the efficiency and speed of production may suffer. Foxconn had relied heavily on these experienced engineers to guide local teams and ensure smooth operations, particularly as India only began large-scale iPhone manufacturing about four years ago.

Despite these setbacks, Foxconn continues to invest in India, with a new $2.8 billion facility under construction near Bangalore expected to create over 40,000 jobs. However, the sudden exit of Chinese personnel raises concerns about Apple’s ability to meet its aggressive production targets and maintain momentum in India’s growing role as a global smartphone export hub.