Reports indicate that Taiwan’s iPhone manufacturer Foxconn has ceased sending Chinese workers to its iPhone factory in India and has recalled Chinese workers already stationed in India. Additionally, iPhone production equipment bound for India has been detained within China.
On January 10 (Friday), the US tech media outlet “Rest of World” cited five sources familiar with Foxconn’s operations, stating that Foxconn has temporarily halted the dispatch of Chinese workers to its factories in India and has instead started sending Taiwanese workers.
Sources revealed that the main reason for the halt in worker deployment and equipment exports was due to actions by the Chinese authorities. One source stated: “Currently, both equipment and manpower cannot be sent to India. India lacks the technical capabilities to produce this equipment.”
This development could disrupt Foxconn’s operations in the Indian states of Tamil Nadu and Karnataka, potentially affecting the production schedule of the next generation of iPhones.
In recent years, due to geopolitical tensions between the US and China, as well as stringent COVID-19 control measures by the Chinese government, there has been a significant impact on global supply chains. This has led to multinational corporations, including Foxconn, gradually relocating parts of their supply chains to overseas regions like India.
As of now, Apple and Foxconn have not commented on the situation, and neither the Chinese authorities nor the Indian government have responded. This situation highlights the challenges faced by multinational corporations when attempting to shift production from China to other regions while contending with pressure from the Chinese government.
Currently, Foxconn’s production in India still relies on Chinese workers, some Taiwanese foreign workers, and specialized equipment from China.
Sources revealed that in recent weeks, Chinese workers scheduled to go to India have been informed that their trips are canceled. Some employees who have obtained visas and plane tickets have been banned from traveling. Meanwhile, Chinese workers already in India have received verbal notices instructing them to return to China by an unspecified date.
In order to minimize the impact of the production halt, Foxconn is considering dispatching Taiwanese workers to replace the Chinese workers. Internal sources stated that Foxconn has increased the production and export of iPhone semi-finished products from its Mainland China factories to ensure that the final assembly factory in India can continue producing an adequate supply of iPhones.