Foxconn's India iPhone Dreams Hit Snag As China Recalls Engineers, Devanahalli Boom Meets Blowback
Workforce vacuum, geopolitical tensions, and farmer resistance challenge Apple’s India push..
Foxconn, Apple’s key manufacturing partner, is facing an unexpected disruption in its India operations with the silent recall of over 300 Chinese engineers and technicians. These skilled workers, crucial to the assembly lines of iPhones, have been gradually withdrawn from Foxconn’s facilities in the southern part of the country over the past two months.
The abrupt exit, as per Bloomberg sources, leaves only Taiwanese staff supporting local production — a concerning development as Apple ramps up preparations for the iPhone 17.
Foxconn has asked hundreds of Chinese engineers and technicians to return home from its iPhone factories in India, dealing a blow to Apple’s manufacturing push in the South Asian country https://t.co/PIpl3DK0vk pic.twitter.com/jIJ9TDrA6I
— Bloomberg TV (@BloombergTV) July 2, 2025
This development casts a shadow over Apple’s efforts to shift more of its manufacturing out of China. While product quality may be safeguarded thanks to process standardisation, the sharp drop in skilled manpower could delay production schedules, particularly during the critical pre-launch phase.
Beijing Tightens Grip on Talent and Tech
The withdrawal of workers appears to be no coincidence. According to Bloomberg News, the Chinese government has been pressuring its regulatory bodies and provincial officials to halt the outflow of technical expertise and sensitive equipment to rival manufacturing hubs like India and Vietnam. This move is widely seen as a defensive strategy against growing Western efforts to shift supply chains out of China amid ongoing US-China trade tensions.
The clampdown doesn’t just target people — it also restricts specialised manufacturing know-how and hardware required to operate advanced electronics facilities.
This policy has ripple effects for companies like Apple, whose CEO Tim Cook has in the past acknowledged, “The skill is very deep in China, and the tooling is very advanced. The products we do require really advanced tooling and the precision that you can only get in China.”
ALSO READ: 'Not India, Or Anyplace Else': Trump Warns Apple Of 25 per cent Tariff On Foreign-Made iPhones
Real Estate Boom Meets Grassroots Resistance
At the heart of this evolving supply chain story is Devanahalli, a quiet farming town near Bengaluru that's transforming rapidly into an industrial hotspot.
Upcoming Foxconn’s huge manufacturing facility with employee housing at Doddaballapura near BLR Airport. pic.twitter.com/jDSpjrSIQp
— Krishnan (@cvkrishnan) June 15, 2025
Foxconn’s massive new facility, dubbed “Project Elephant,” is at the centre of this transformation. The $2.5 billion factory, sprawling across 13 million square feet, is expected to create 40,000 jobs and double iPhone output in India to 30 million units.
But the tech boom hasn’t come without friction. While many local farmers have sold their land, others remain defiant, demanding better compensation. “These promises are not very new for the villages. … It’s a very good fairy tale they bring every time,” Ramesh Cheemachanahalli, a farmer leader from the region, told Rest of World. “But what are the preparations for the jobs?”
Cheemachanahalli points out that most villagers are ill-equipped to benefit from the new economy. “Beyond a handful of roles such as janitors or gatekeepers, most villagers are unemployable at the factories,” he said, highlighting the disconnect between industrial growth and local community upliftment.
A Delicate Balancing Act
India’s growing prominence in Apple’s global manufacturing strategy is undeniable — the country already produces about 20 per cent of all iPhones. Apple had hoped to push this number higher, aiming to manufacture the bulk of its US-bound iPhones in India by late 2026. However, the unexpected talent gap triggered by China’s clampdown could throw a wrench in those plans.
Meanwhile, the urbanisation of Devanahalli is in full swing. Developers are marketing housing projects around the Foxconn facility to incoming workers from China, Taiwan, and the Philippines. Property prices have surged, with some listings quoting triple the rates from just five years ago. Civic infrastructure is improving too, with modern hospitals, schools, and delivery services now commonplace in what was once a rural outpost.
Still, as land protests continue and geopolitical tensions simmer, Apple and Foxconn find themselves navigating not just factory floors but also the complex terrain of global power politics and local resistance.
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