Chinese Foxconn workers banned from traveling to Indian iPhone factories, hardware deliveries delayed: report

Taiwanese company Foxconn is suspending a brand new job rotation system for its Chinese workers at Apple iPhone factories in India and as an alternative sending workers from Taiwan, Taiwanese company Foxconn said. Rest of the worldwhich quoted five people acquainted with Foxconn’s operations in India. The report added that supplies of specialised manufacturing equipment to India have also been suspended in China.

The move could disrupt iPhone assembly lines at Foxconn factories in Tamil Nadu and Karnataka. The report identified that the Chinese government was accountable for the suspensions within the deployment of workers and equipment exports.

“Currently, equipment and labor cannot flow (to India).” Rest of the world quoted the sources as adding: “And India does not have the technology to produce such equipment.”

Impact of suspensions

If the reports prove to be true and the hold-up continues, it could hamper Apple’s broader ambitions to develop next-generation iPhones in India in partnership with Foxconn.

Additionally, the most recent development highlights the difficulties Apple faces in trying to diversify production outside of China.

Earlier, production of a few of the most advanced iPhone models was moved to India after some factories were disrupted due to China’s COVID zero emission policy.

In 2019, Foxconn began producing iPhones at its factory in Tamil Nadu, and in 2022 it began expanding its facilities and workforce in India. The two factories in Tamil Nadu and Karnataka collectively employ tens of hundreds of workers.

However, factories in India run by Foxconn still depend on Chinese workers and a smaller variety of expatriate Taiwanese workers, in addition to specialized machinery from China, the report said.

The Taiwanese company has deputed managers, engineers and technicians to supervise the production and maintenance of the tools in India.

Visa issues

The report stated, amongst other things, that Chinese Foxconn employees who were scheduled to travel to India were asked to cancel their trips. The source even said that the person had obtained visas and plane tickets but had stopped traveling. Several Chinese workers – currently in India – have been ordered to return home by an unspecified date. The guidelines were communicated orally to employees, Rest of the world – he quoted considered one of Foxconn’s employees as saying.

According to A Bloomberg the report shows that Apple produced $14 billion value of iPhones in India in fiscal yr 2024 at factories operated by Foxconn, Pegatron and India’s Tata group.

Meanwhile, the expert opined that China could take steps to prevent India from difficult its position as a worldwide manufacturing powerhouse.

“Underlying tensions will continue to ensure that this type of economic competition between the two sides will only intensify,” he added. Rest of the world quoted the statement of Harsh V. Pant – professor and vice-president for studies and foreign policy on the Observer Research Foundation in New Delhi.

“Many people in India will read this in a very negative light, regardless of whether the Chinese government is directly involved (in the suspensions),” Pant added.