iPhone maker fires Chinese staff

(MENAFN) Foxconn, the manufacturer of iPhones, has sent more than 300 Chinese engineers and technicians back to China from its factories in southern India, Bloomberg reported on Thursday. This move began around two months ago and has left only Taiwanese support staff currently working in India, according to sources familiar with the situation.

The exact reason behind Foxconn’s decision remains unclear, but it coincides with reports that Chinese officials have urged regulatory bodies and local governments to limit technology transfers and equipment exports to India and Southeast Asia. Industry experts suggest this may be an effort to discourage companies from relocating manufacturing away from China.

While Foxconn continues to produce most iPhones in China, it has been steadily expanding its assembly operations in India, relying heavily on experienced Chinese engineers to accelerate growth. The sudden departure of these employees could slow the training of local workers and delay the transfer of manufacturing know-how, potentially raising production costs.

Though the quality of Indian-made iPhones is expected to remain unaffected, Bloomberg noted the absence of Chinese staff may reduce assembly line efficiency. In May, Foxconn announced plans to invest $1.5 billion in India to offset potential US tariffs on China-made goods. Apple CEO Tim Cook also confirmed a production shift to India, stating that most iPhones sold in the US will soon be manufactured there.

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