Foxconn, which makes iPhones for Apple, has removed Chinese staff from factories in India

Foxconn, the largest contract manufacturer of American devices maker Apple, has removed Chinese engineers and technicians from its factories in India. This may cause difficulties for Apple in preparing for the manufacturing of the upcoming iPhone 17. The number of Chinese staff removed from Foxconn’s factories is more than 300.

A Bloomberg report states that the tension between the US and China over trade and tariffs may be the reason behind Foxconn’s decision. In the last two months, more than 300 Chinese workers have been out of Foxconn’s iPhone assembling units in India. However, Taiwan’s Foxconn has not given the reason for this. Recently Foxconn has set up a new factory in Oragadam, Tamil Nadu. This has indicated that Apple is increasing manufacturing in India.

During March to May this year, Foxconn exported iPhones worth about $3.2 billion from the country. About 97 percent of these iPhones have been exported to the US. However, US President Donald Trump had expressed displeasure over Apple’s plan to increase iPhone manufacturing in India. Trump had also warned of imposing a 25 percent tariff on Apple’s iPhones sold there if they were not manufactured in the US. This could increase the price of iPhones in the US.

Foxconn has about 80,000 workers in India. It is the largest manufacturer of iPhones. However, a large part of Foxconn’s manufacturing is in China. As part of Apple’s strategy to reduce manufacturing in China, Foxconn has increased the assembly of iPhones in India. In the last financial year, the share of iPhones in the export of smartphones from the country was about Rs 1.5 lakh crore. Apple’s affordable iPhone 16e, launched in February, is being assembled in India. The iPhone 16e being assembled in the country will be sold in India as well as exported to some countries. Recently, manufacturing of iPhones has also been started in the new factory of Tata Group’s Tata Electronics in Hosur, Tamil Nadu.