Apple’s efforts to expand its production in India have encountered a surprising hurdle with the repatriation of hundreds of Chinese workers from Foxconn’s facilities. In May 2025, Foxconn announced a significant $1.5 billion investment in India, coinciding with the Indian government’s approval for a new semiconductor factory. However, reports suggest that, amid this expansion, Foxconn has been instructing Chinese workers to return home.
According to Bloomberg, Foxconn began sending its Chinese workforce back to China approximately two months ago, resulting in the departure of over 300 workers. Currently, the remaining personnel primarily consists of support staff from Taiwan. Neither Foxconn nor Apple has provided comments on this situation, leaving the reasons behind the departure unclear.
It remains uncertain whether the workers were laid off or merely transferred to Foxconn facilities in China. This move reportedly aligns with efforts from Beijing officials to prevent local firms from relocating operations outside of China, particularly to India or Southeast Asia. China has been increasingly restricting the mobility of skilled labor, which may complicate the situation for those Chinese workers who had already left.
Historically, Foxconn has relied heavily on experienced Chinese engineers to facilitate its rapid expansion in India, especially for training local staff. Although the training process has been ongoing for several years and the majority of Foxconn’s production lines are now operational, one source indicated that the recent changes may affect efficiency on the production line. Should efficiency be adversely impacted, Foxconn’s output of iPhones from India could potentially decrease.
This situation arrives as the company gears up for mass production of the upcoming iPhone 17. With Chinese authorities blocking the use of Chinese expertise, this development adds another challenge to Apple’s goals of scaling production outside of China. In the short to medium term, it further demonstrates the difficulties Apple faces in establishing a robust manufacturing presence in India and elsewhere.
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