The massive withdrawal of hundreds of engineers from Apple's iPhone factories in India by China has sent shockwaves across the boards: tech, trade, and geopolitics alike. Many believe the ramifications are huge: Apple's supply chain and the equation between India and the other country might soon change.
What Exactly Happened?
Apple started making iPhones in India with Foxconn, Pegatron, and the rest. A considerable number of Chinese engineers were brought i, especially to work in their factories in Chennai and Kanyakumari districts in Tamil Nadu. Suddenly, however, the Chinese authorities called for the return of what they say are hundreds of engineers.
What Could Be The Reason for That Action Made By China?
Analysts have different views on the possible reasons.
Pressure from geopolitics: Some tensions have arisen recently on the China-India border and may have affected these workers.
Increased control and changes in China's industrial policy: Beijing now wants to regain more control over the production of technology within its territory.
Reducing dependence on India: Possible. Apple is gradually shifting its manufacturing base outside of the country, and maybe this is not too pleasing to China.
Meaning for Apple?
The engineer's withdrawal would have direct implications for Apple's production timeframes. Some of the recalled engineers are experts in high-end technologies and manufacturing methods. You can imagine how their absence will block up the assembly line if local workers are not yet fully skilled.
Gain or loss for India?
From India's point of view, it is undoubtedly a challenge with opportunities as well. The time is ripe for skill enhancement for local technologists and engineers. The government is keen to take this in a positive direction and promote it with its Make in India program.
It means that this withdrawal is more than just the withdrawal of Chinese workers. It is a well-thought-out grand move in terms of strategy. Following this move, it is very likely that global technology production may go through quite a reorientation. On the other hand, this is the time of a huge opportunity for Indian technology, which means that the road map for skill development in the country is drawn.
