English
In a significant business development, Apple’s largest iPhone manufacturer Foxconn has recalled over 300 Chinese engineers and technicians from its Indian production facilities. Due to the mass withdrawal, which started 2 months ago, Foxconn is reportedly facing significant operational challenges as it prepares for iPhone 17 manufacturing in India. Here are all the details regarding the mass exodus and Foxconn’s recent India investment.
As per a report by Bloomberg, the massive exodus of Chinese engineers and technicians is a serious issue as Apple is currently planning its India expansion and Foxconn is also investing USD 2.2 billion in India and the United States for Apple iPhone manufacturing. The Bloomberg report also says that Chinese officials have quietly pressured regulatory agencies and local governments to restrict technology transfers and skilled labor exports to India and Southeast Asia.
Although the exodus of the Chinese engineers and technicians is not expected to impact the production of iPhones in India yet but if the problems increase, iPhone prices might see an increases in prices.
Taiwanese electronics giant Hon Hai Precision Industry Co., also known globally as Foxconn, has received government approval to invest over USD 2.2 billion in India and the United States, reported Focus Taiwan. This approval was given by Taiwan’s Ministry of Economic Affairs. Out of the total amount, around USD1.49 billion will go to Foxconn’s Singapore subsidiary.
Singapore subsidiary will use the fund to invest in Yuzhan Technology (India) Private Ltd., another Foxconn subsidiary. This investment will help build a new factory in India to produce iPhones and their components.
Experts believe this move is part of Foxconn’s plan to shift some production out of China due to trade tensions with the United States. India is becoming an important hub for making iPhones and their components.
Foxconn has also been approved to use USD 735 million to set up a new company in the US called Project ETA (DE) LLC. This new business will focus on making equipment for data centers and assembling servers.
(With inputs from agencies)
For breaking news and live news updates, like us on Facebook or follow us on Twitter and Instagram. Read more on Latest Business News on India.com.
