The government has been actively monitoring the production targets at Foxconn and holds the view that Apple possesses alternatives to address the challenges arising from the return of Chinese professionals. They were working at the Taiwanese electronics manufacturer's plant in India, according to sources. Many Chinese technology professionals, who played crucial roles in facilitating and managing production at Foxconn's facilities in India, have returned to China. Their return has raised concerns that this might disrupt the production of the upcoming iPhone 17 series. A government source noted that while the situation is under observation, Apple is expected to explore ways to manage the issue, which is primarily a matter between Apple and Foxconn.
Expertise necessary to operate equipments
It was mentioned that most equipment used in mobile phone manufacturing is sourced from China, and these Chinese professionals have the expertise necessary to operate this equipment. Sources indicated that the engineers who left were responsible for handling assembly lines, designing factory layouts, and training local talent to use the tools and machines essential for iPhone production.
Speaking on condition of anonymity, a source confirmed that the government is keeping an eye on production targets at the Foxconn factory. It was highlighted that Foxconn was selected by the government under the production-linked incentive scheme, and the government had facilitated visas for the Chinese workers. Companies are expected to make arrangements to avoid any disruption in production.
iPhone production in India
Industry insiders familiar with iPhone production in India asserted that the return of these Chinese technology professionals would not affect the production of the iPhone 17 and emphasised that Apple remains on track to increase its production capabilities in India. Additionally, Apple vendors in India, namely Foxconn and Tata Electronics, have reported improvements in the sourcing of capital goods from China that are vital for iPhone production.
According to various sources, Apple has plans to escalate its iPhone production from 35-40 million units in 2024-25 to 60 million units this year. During a recent earnings announcement, Apple CEO Tim Cook stated that all iPhones sold in the US during the June quarter would be shipped from India. The iPhones manufactured in India are assembled at Foxconn's factory in Tamil Nadu, while Tata Electronics, which manages Pegatron Corp's operations in India, is another key player in the production process. Both Tata and Foxconn are in the process of building new plants and expanding production capacity to enhance iPhone output.
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