NEW DELHI: In a development that has sent ripples through India’s electronics manufacturing sector, hundreds of Chinese engineers and technicians working at Foxconn’s iPhone production facilities in India have been abruptly recalled. Top Indian intelligence sources suspect the move is part of a broader Chinese strategy aimed at sabotaging India’s emergence as a reliable global manufacturing and supply chain hub.
According to a Bloomberg report, over 300 Chinese personnel have been withdrawn from Foxconn’s iPhone plants in southern India over the past two months. These workers were previously involved in key technical roles and in training the Indian workforce. Their sudden exit, without any official statement from Foxconn or Apple, has raised red flags at the highest levels of the Indian government.
Sources within the intelligence community claim that this withdrawal is not an isolated incident. Instead, it is part of a series of non-kinetic pressure tactics employed by Beijing. These include delays in export approvals for critical manufacturing equipment, restrictions on magnet exports, and broader efforts to discourage technology transfers to India and Southeast Asia. The timing of these disruptions is strategic, coinciding with tariff-sensitive periods and major global shifts in supply chains—especially in light of Apple’s growing dependence on its Indian production facilities to reduce reliance on China.
The move is seen as a direct attempt to destabilize India’s ambitions under its Make in India and Production Linked Incentive (PLI) schemes, particularly in high-tech sectors such as electronics and electric vehicles. With Apple ramping up plans to shift a significant portion of iPhone assembly to India, Beijing’s actions may be aimed at signaling to multinational corporations that choosing India could trigger retaliatory consequences from China.
Intelligence officials have also linked these moves to a broader pattern of “coordinated delay actions,” warning that such sabotage efforts threaten India’s economic security and strategic autonomy. They suggest that China’s covert pressure campaign seeks to slow India’s progress just as the country positions itself as an alternative to China in global supply chains.
Notably, the withdrawal of skilled Chinese technicians is expected to have a cascading impact on production timelines, local workforce training, and technology transfer—essential elements for scaling up manufacturing. While support staff from Taiwan have stepped in to fill the void, the efficiency of operations is likely to suffer in the short term, say insiders. “This won’t affect the quality of iPhones produced in India, but it will certainly impact line efficiency and increase production costs,” said one official familiar with the developments.
Foxconn’s southern India facility is currently responsible for assembling the bulk of India-made iPhones. Tata Group, which recently acquired Wistron Corp. and took over parts of Pegatron Corp.’s operations, is also emerging as a key Apple supplier. Despite these efforts, the sudden removal of critical manpower could slow Apple’s timeline to shift full-scale iPhone assembly for the U.S. market to India, a move reportedly being considered as early as next year.
Adding to the geopolitical undertone, Chinese authorities earlier this year reportedly issued verbal instructions to their regulatory bodies and local governments to limit the outflow of advanced manufacturing technology to India. The move was seen as a warning against companies shifting operations out of China amid ongoing tensions and trade realignments.
Apple CEO Tim Cook had previously praised the expertise of Chinese assembly workers, often citing them as integral to the company’s production ecosystem. The sudden exit of these workers from India is thus being viewed not just as a logistical issue, but as a strategic message meant to deter further manufacturing migration to Indian shores.
While there has been no official comment from Apple or Foxconn, the implications of the Chinese pullout are being closely monitored by the Indian government and industry stakeholders. With India currently producing about 40 million iPhones annually—roughly 15% of Apple’s global output—the stakes are high.
For India, the episode underscores the urgent need to accelerate the development of a self-sufficient, skilled electronics workforce and reduce its dependency on foreign technicians. As global supply chains shift in a post-pandemic, post-tariff world, India’s ability to navigate geopolitical sabotage and establish itself as a stable manufacturing base will be crucial.
