Exit of Chinese engineers may leave Foxconn India in a bind

After the rare earth crisis, India may now be staring at another one relating to technical know-how.

Chinese engineers and electronics specialists working at Foxconn’s facilities in India have left the country before the expiry of their visas, sources told businessline. They are likely to have left in the last couple of weeks, they said.

At Beijing’s behest?

Chinese engineers — the numbers could not be ascertained — have left from Apple supplier Foxconn’s assembly units in Sriperumbudur, near Chennai, and from Bengaluru. This was most likely prompted by the Chinese government’s suggestion, sources in the know said. However, this may not have been done officially, they added.

“Many Chinese have left both the Chennai and Bengaluru sites and the company has substituted them with Taiwanese and Vietnamese engineers,” one source said.

The exit of Chinese staff is specific to Foxconn, businessline has learnt.

Alternative set-up

Foxconn’s facility has been in Chennai for years now, and the company has most likely developed capabilities in-house. They can also send people to their own factories in Vietnam or Taiwan to upskill, an industry insider said.

“The company has groomed Indians to take on critical roles instead of the Chinese. They should to be able to tide over this,” sources said.

While the departure of Chinese engineers may not disrupt current production, every iPhone model comes with changes in specifications, and it is good for manufacturers to have Chinese experts on site, another industry executive said. “They have made alternative arrangements, and they will manage,” the person added.

businessline could not reach Foxconn officials for comment.

Exports surge

India’s iPhone exports to the US have surged. Between January and May 2025, Apple’s contract manufacturers shipped over 20.4 million iPhones, up 57 per cent from the same period last year, according to Canalys (now part of Omdia). Foxconn led with 52 per cent of the exports, while Tata accounted for 37 per cent.

This development comes on the heels of Indian automotive sector battling a rare earth magnet crisis due to China’s export curbs on the material. Amid President Trump’s tariffs on China, India has emerged as a key exporter of iPhones to the US market in recent months.

Published on July 2, 2025