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Foxconn, one of Apple’s key manufacturing partners, has paused new rotations of Chinese workers to its iPhone factories in India, opting instead to send in Taiwanese workers, according to a report from Rest of World. This disruption, coupled with delays in critical shipments of manufacturing equipment, is expected to significantly impact Foxconn’s operations in India and potentially complicate Apple’s plans to diversify its iPhone production away from China.
The delays are particularly affecting Foxconn’s iPhone assembly plants in Tamil Nadu and Karnataka. Sources revealed that shipments of essential equipment and labor resources were not being allowed to enter India, with one source stating, “Currently, the equipment and manpower are not allowed to go over [to India],” adding that “India doesn’t have the technology to produce the equipment.”
Foxconn’s Tamil Nadu plant, which began manufacturing iPhones in 2019, initially focused on older models but has expanded production to newer ones over time. While Apple moved some of its iPhone manufacturing to India in response to factory disruptions caused by China’s strict zero-COVID policies, the operation in India still relies heavily on Chinese workers, along with a small number of Taiwanese expatriates and specialized machinery from China.
Chinese workers scheduled to travel to India were reportedly instructed to cancel their trips, with some staff who had already obtained visas and plane tickets stopped from traveling. Additionally, workers already present in India were asked to return to China.
As a result of these challenges, Foxconn is reportedly considering deploying Taiwanese workers as replacements for the affected Chinese employees to continue its operations. Some sources suggested that the suspension of worker deployments and equipment exports could be linked to the Chinese government’s influence, though this has not been confirmed.
In response to the disruption in India, Foxconn is ramping up production in its Chinese factories to ensure that there are sufficient iPhone units available for final assembly in India.
This development comes amid ongoing geopolitical tensions between China and India, adding further complexity to the situation. Both countries have a long history of border disputes, and the economic rivalry between them continues to intensify, making the future of Foxconn’s manufacturing strategy in India uncertain.
The delays in shipments and labor shortages may put Apple’s goal of reducing its dependence on China for iPhone production at risk, potentially delaying or limiting the expansion of its manufacturing footprint in India. With the evolving geopolitical dynamics and the increasing competition between China and India, Apple’s plans to shift production may face additional hurdles in the coming months.
Sources By Agencies
