Apple’s attempt to increase production capacity in India faces an unexpected test with the change of technical staff in the field. Foxconn’s recalling hundreds of Chinese engineers and technicians in the iPhone production facilities in India is considered as a development that may adversely affect the process. According to Bloomberg’s information, this withdrawal began about two months ago and so far more than 300 Chinese employees have left the field. Most of these people were working at the most critical points of the Apple production process.
These engineers were technical experts who set up production lines, educate employees and optimize processes. This team, which took direct responsibility in the education of local workers, played a key role in making Foxconn’s stable production quality stable. After the withdrawal of Chinese personnel, only some Taiwan support teams remained in the region. Although the process has not stopped completely, the loss of experience seems to force production efficiency.
It is important to diversify production areas for Apple
Apple wants to reduce its dependence on China by increasing its existence in India. In line with this goal, Foxconn’s construction of a new production facility continues in the south of India. In addition, the lack of Chinese employees has come to a period in which the iPhone 17 production process accelerated. This schedule can lead to delays in Apple’s production calendar and decrease in yield.
The reason behind the withdrawal of the staff is not fully explained. But according to Bloomberg, this decision may be linked to the desire of Chinese authorities to more strictly control the technology and labor transfers of South Asia. Chinese companies face pressure to direct the production of global customers out of China. This pressure causes the Chinese administration to activate control mechanisms more.
Apple CEO Tim Cook had previously emphasized the expertise of the Chinese labor force. China’s assembly workforce is still in the center of Apple’s global supply chain. Despite everything, Apple has not given up its goal of diversifying production resources. India continues to be one of the most important parts of this goal.
Nevertheless, it is still unclear to what extent local production can meet Apple’s quality standards. The absence of Chinese engineers is not only technical, but also a cultural gap. The rapid implementation of the decisions taken in the production processes and the resolution of the problems were directly related to the experience of these teams. Now the question mark of how long Indian teams can close this gap.
Although Foxconn’s production capacity in India is increasing, this process contains difficulties in the short term. Apple is known to increase the iPhone ratio produced in India in 2023 to 7 %. However, in order to achieve higher rates, field efficiency needs to be sustainable. Field engineering continues to be a critical element in terms of production continuity.
In addition to all these, it seems to take time to complete and capacity of Foxconn’s new factory. It is obvious that the new facility is needed to transfer serious information for full efficiency. At this point, the experience of Chinese engineers was of great importance. It remains unclear how long local cadres will capture the same performance.