With the hype for the iPhone 17 series building up, Foxconn has pulled an unexpected move. The company has withdrawn more than 300 Chinese engineers and technicians from its Indian assembly lines over the past two months, according to a new report from Bloomberg. This sudden decision could affect the overall production of the upcoming iPhone 17 series. 

While Foxconn hasn’t officially confirmed the reason behind the recall, Bloomberg has linked the move to China’s growing restrictions on technology and expertise exports. Earlier this year, Chinese authorities reportedly urged regulatory bodies to limit overseas tech transfers. This could be a signal to discourage the relocation of manufacturing out of China. The pullback comes amid increasing geopolitical tensions and Apple’s broader push to diversify its supply chain beyond China.

Impact on iPhone 17 Production in India

While the quality of iPhone production isn’t expected to drop, Bloomberg notes that this could have an impact on the assembly line efficiency and worker training. As many recalled, Chinese engineers were involved in onboarding and upskilling Indian staff, this could hamper the production of iPhone since India only began large-scale iPhone manufacturing four years ago.

Additionally, Foxconn is also in the middle of building a new iPhone plant in southern India. The pullback could also affect this expansion move by Foxconn and have a deeper impact on production and assembly lines, making this all the more disruptive.

Apple’s India Ambitions May Face Delays

Apple has been betting big on India, which now accounts for roughly 20% of global iPhone production. The company is highly bullish on the Indian market and wants to manufacture the majority of US-bound iPhones in India by late 2026. However, these plans could face delays, as the sudden pullbacks might affect Foxconn’s efficiency. While the quality of iPhones may not suffer, Bloomberg warns that assembly efficiency and ramp-up timelines could take a hit.

The Bigger Picture

This incident highlights the growing tensions between China and the rest of the world, especially in critical areas like semiconductors, electronics assembly, and supply chain logistics. As India and Vietnam step up efforts to attract global tech giants, China appears to be pushing back with silent restrictions.

Additionally, the pullback also plays into broader India-China tensions. Despite some diplomatic progress, key issues like visa restrictions for Chinese citizens in India, India’s continued ban on Chinese apps like TikTok, and more still remain unresolved.