Govt views the exit of Foxconn's Chinese staff both as a challenge and an opportunity

The Indian government sees Foxconn’s decision to withdraw over 300 Chinese engineers from its iPhone plants in Chennai and Bengaluru as both a challenge and a chance to broaden its talent base. While the exit of mid-level Chinese engineers from the company’s Chennai and Bengaluru plants is a challenge, it is not insurmountable, according to a source who confided this information.

“The facilities have been here for five years. We believe training has already been imparted, and the remaining workforce can continue operations,” the source said. “It’s also a chance to bring in talent from other geographies like Vietnam and the US.”

The source also said that the Ministry of Electronics and Information Technology (MeitY) had previously facilitated visas for Chinese engineers working at Foxconn’s facilities. This, at a time when the central government has generally been restrictive in its policy on such applications.

The move was made with consideration for the strategic importance of Apple’s India operations and its efforts to scale local manufacturing.

Apple’s largest contract manufacturer, Foxconn has been expanding its footprint in India over the past few years. The company is currently building a new iPhone plant near Bengaluru, which is expected to play a significant role in Apple’s export strategy. It has also recently started producing AirPods in Hyderabad for overseas markets.

However, the sudden repatriation of Chinese staff, first reported by Bloomberg, has triggered concerns over potential delays in the training of local workers and transfer of manufacturing know-how.