Apple supplier Foxconn reduces Chinese staff in India: Here's why

Apple supplier Foxconn reduces Chinese staff in India: Here's why

In a surprising development, Foxconn has asked hundreds of its Chinese employees to leave its iPhone manufacturing facilities in India.

The move comes despite the company's $1.5 billion investment in the country and the Indian government's approval for a new semiconductor factory.

According to Bloomberg, this decision was made around two months ago and has seen over 300 Chinese workers depart so far.

Why Foxconn's decision remains unclear

The reason behind Foxconn's decision to send Chinese workers back remains unclear. It is also not known if these employees were laid off or redeployed to the company's facilities in China.

The move comes as Beijing officials are said to be working against companies shifting away from China by limiting exports of equipment or technologies to India and Southeast Asia.

Will this affect iPhone production in India?

Foxconn has relied heavily on skilled Chinese engineers for its rapid expansion in India.

These workers have played a key role in training local staff and setting up production lines.

The recent changes could affect efficiency on the production line, possibly reducing iPhone output from India.

This comes just as Foxconn is gearing up for mass production of the new iPhone 17 range due to arrive in September.