'Exit of Foxconn Chinese staff will help Apple India in the long term'
Production has slowed down for now, but transition will open new doors and help company build self sufficient local workforce, says source close to TN govt
In response to a recent Bloomberg report suggesting a potential setback to Apple’s manufacturing ambitions in India, top sources privy to the matter have allayed fears, asserting that the broader growth trajectory for Apple in India remains intact.
The report disclosed that Foxconn, a key Apple supplier, has begun withdrawing hundreds of Chinese engineers and technicians from its iPhone production facilities in Sriperumbudur, near Chennai. It further raised concerns over disruptions to the tech giant's strategic shift toward India.
Bloomberg noted that over 300 Chinese staff have already returned home in a move that began nearly two months ago.
'Slow, but not derailed'
However, the official that The Federal spoke to, who is closely associated with the Tamil Nadu government, countered the suggestion that this marks a blow to Apple’s India production plans.
Also read | Foxconn's pullout of Chinese engineers sparks turmoil in Apple’s India plans
“Well, undeniably, things have slowed down,” the official acknowledged. “But, this certainly does not stop the growth story. If anything, it’s a transition that will open new doors.”
The source emphasised that Foxconn’s evolving strategy now includes bringing in talent from other regions to support the training of Indian engineers.
"Apple is an American firm and Foxconn is a Taiwanese firm. As the companies have been invested in China for a long time, the Chinese have had the opportunity of the know-how...This (training local talent) will take time, yes, but it’s a deliberate step toward building a more self-sufficient local workforce," the official added.
Retrofitting of machinery
Bloomberg also reported that Foxconn is working to retrofit machinery originally configured in Chinese to accommodate English-speaking Indian workers. The source confirmed this, noting that orders for the upgraded systems have already been placed, with delivery expected in the coming months.
"These are necessary adaptations for long-term localisation," the official explained. “This shift, though momentarily disruptive, is part of a deeper commitment to India’s role in the global supply chain.”
"The focus is long-term capacity building," he reiterated. "This transition is not a setback but a necessary step in India’s evolution as a global manufacturing hub."
Apple and Foxconn have not issued official comments on the development.
Local shipments
Industry analysts echo the sentiment that India remains central to the future of smartphone manufacturing.
Watch | Did Foxconn India refuse to hire married women at iPhone manufacturing plant?
“Local shipments of iPhones are expected to rise by 15% in 2025, from around 11 million units sold in 2024. India is expected to cater to the majority of US demand by this year itself, going by Apple CEO Tim Cook’s comments,” said Prachir Singh, Senior Analyst at Counterpoint Research. Singh told The Federal he stands by his forecast despite any setback the exit of the Chinese engineers may present.
He added that India stands out even as the global smartphone manufacturing outlook softens: “India is expected to be a big winner in smartphone manufacturing in 2025 despite global output forecast to decline by 1% due to tariff impacts and a broader industry slowdown.
"The firm expects smartphone manufacturing in India to grow in the double digits to reach a record 20% share of global output, fuelled by export demand from Apple and Samsung.”
Foxconn continues to invest heavily in India, including building a new iPhone manufacturing facility in Tamil Nadu. Apple, for its part, has set a target to manufacture the majority of its iPhones for the U.S. market in India by the end of 2026.
