June 10, 2025 — Apple’s next-generation iPhone may face production headwinds as Foxconn, its largest manufacturing partner, has reportedly withdrawn more than 300 Chinese engineers and technicians from its Indian assembly plants over the past two months, according to a report from Bloomberg. The abrupt move threatens to disrupt preparations for the iPhone 17, slated for launch this fall.
While Foxconn has yet to release an official statement explaining the decision, the timing coincides with rising geopolitical tensions between China and the United States. Analysts suggest the move may be linked to a tightening of Chinese policies surrounding the export of technological expertise and skilled labor—particularly toward nations like India, which Apple has increasingly relied upon to diversify its supply chain and reduce dependency on China.
Strategic Shifts Meet Political Hurdles
India currently accounts for around 20% of global iPhone output. Apple has set an ambitious goal of shifting the majority of iPhone production to India by the end of 2026, aligning with its broader supply chain diversification strategy. However, the withdrawal of senior technical personnel could delay scaling efforts in the region, potentially slowing down production ramp-ups for the iPhone 17.
According to industry sources cited by Bloomberg, Chinese authorities may be pressuring firms to limit the outflow of technological know-how, wary of empowering alternative tech hubs in competing economies. The situation is unfolding amid a global reordering of manufacturing dynamics—compounded by protectionist policies from major powers.
Foxconn’s Indian Expansion Continues, Despite Setbacks
Despite the personnel pullback, Foxconn has continued to pour investment into its India operations. The Taiwanese giant recently launched a new facility in Oragadam, Tamil Nadu, and pledged $2.56 billion toward expanding its Devanahalli plant, targeting monthly output of 100,000 iPhones by late 2025.
Additionally, Foxconn has received Indian government approval to form a semiconductor joint venture with tech group HCL, valued at over $430 million. These moves underline the company’s long-term commitment to India as a manufacturing base—but they may not be enough to shield production from geopolitical turbulence.
U.S. Trade Policy Adds to the Pressure
Complicating matters further are renewed trade pressures from the United States. Former President Donald Trump, who is campaigning on a return-to-office platform, has publicly criticized Apple’s offshore production model. He has warned that iPhones sold in the U.S. but manufactured abroad could face tariffs as high as 25% if they are not produced domestically.
Trump’s statements have rattled investors and introduced fresh uncertainty for Apple and its partners. His stance may also influence how aggressively Apple can continue expanding in India without facing regulatory or financial pushback at home.
A Critical Moment for Apple’s Supply Chain
In May 2025, Foxconn exported nearly $1 billion worth of iPhones from India to the U.S.—the second-highest monthly value on record, behind only the $1.3 billion mark set in March. A prolonged disruption in engineering support could jeopardize these gains, particularly in the months leading up to the critical iPhone 17 launch window.
Apple now finds itself navigating a complex web of political sensitivities, labor logistics, and production scaling—all under the spotlight of one of its most important product cycles.
