United Daily News (UDN), one of the primary Taiwanese news groups, recently reported that major Apple supplier Foxconn has stopped sending Chinese workers to its factories in India and has reassigned Taiwanese personnel. Chinese workers already in India have been asked to return to China. Foxconn has also paused the deliveries to India of key manufacturing equipment, and India does not possess the ability to produce such manufacturing equipment on its own. These changes may impact Apple’s production strategy.
The disruption to Apple’s production has further heightened geopolitical tensions between China and India, which have long had border disputes and economic confrontations. Some sources alleged that the Chinese government was behind the suspension of sending workers and equipment to India. Meanwhile, Foxconn is ramping up production at its Chinese factories.
Apple began shifting production of its high-end iPhone models from China to India in 2019. One factor driving Apple’s shift in recent years was China’s “Zero COVID” policy, which made manufacturing in China more difficult. India plays an increasingly important role in Apple’s supply chain.
Source: UDN, January 12, 2025
https://udn.com/news/story/6811/8484985