Jan 10, 2025 09:43 PM IST
The shipments of critical equipment that were meant to reach India from China have also been delayed
Foxconn, a key Apple manufacturing partner, has halted new worker rotations for Chinese workers to its factories in India and started sending in Taiwanese workers instead, Rest of World reported quoting sources.
The shipments of critical manufacturing equipment that were meant to reach India have also been delayed, the publication stated.
The disruption is expected to have a significant impact on Foxconn’s operations in India and can potentially hinder Apple’s plans to diversify iPhone production away from China.
The delays primarily affect Foxconn’s iPhone assembly plants in Tamil Nadu and Karnataka.
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“Currently, the equipment and manpower are not allowed to go over [to India],” one of the sources told Rest of World. “And India doesn’t have the technology to produce the equipment.”
Notably, Apple shifted production of some of its most advanced iPhone models to India in 2019 due to disruptions in factory operations caused by China’s zero-Covid policies.
Foxconn started manufacturing iPhones at its plant in Tamil Nadu in 2019, initially focusing on older models. However, production in India continues to depend on Chinese workers, a small number of Taiwanese expatriates, and specialised machinery sourced from China.
Chinese workers asked to cancel their trips to India
According to the report, Chinese workers who were scheduled to travel to India were asked to cancel their trips, and some staff members who had already obtained visas and plane tickets were stopped from travelling.
Similarly, the workers who were already present in India were asked to return to China.
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Meanwhile, to mitigate the disruption, Foxconn is reportedly considering deploying Taiwanese workers to replace the affected Chinese employees.
Some of the sources told the Rest of the World that the Chinese government is responsible for the suspensions of worker deployments and equipment exports.
Foxconn stepping up production in its Chinese factories
Meanwhile, Foxconn is also stepping up production in its Chinese factories to ensure sufficient iPhone units are available for final assembly in India.
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The ongoing geopolitical tensions between China and India add another layer of complexity to the situation. Both countries have long had a fraught relationship due to border disputes, and their economic rivalry continues to grow.
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