Foxconn Starts iPhone 17 Production in India, Faces Talent Shortage

Apple supplier Foxconn is already embarking on low-volume production of the future iPhone 17 at its Devanahalli, near Bengaluru, factory project costing US$2.8 billion, people familiar with the development informed.

The largest iPhones manufacturer, Foxconn made Bengaluru as it’s second-largest of the tenants, outside China.

The Chinese had to recall a good number of engineers and then the production ceased temporarily but Foxconn hired the expertise of other countries such as Taiwan to resolve the situation. The iPhone 17, also, is produced at Foxconn, Chennai plant.

Key Highlights

• Foxconn kickstarts iPhone 17 production in India with $2.8B Bengaluru plant.
• Apple eyes 60 million iPhones made in India by 2025 — a major production shift.
• Skilled labor shortage hits electronics sector as Foxconn overcomes China crisis.

Apple is said to have a goal of increasing the volume of iPhones being manufactured in India to 60 million units by the whole year, an increment of 35 million to 40 million by the year 2024-25.

Apple produced 60 per cent more iPhones in India in the same year (ended March 2025), worth approximately US$22b. Apple had a market share of 7.5 percent in the Indian smartphone market in Q2 2025, and it has been shipped out the most iPhone 16. The mass quit by hundreds of Chinese engineers of Foxconn Bengaluru unit raises a pertinent question in front of the electronics manufacturing sector across the globe. 

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Many industries in the world, the electronics sector incurring the greatest burden due to the effects of the ageing population with the likely growth of the population of 65 and above by 16 percent by 2030 producing gaps in the supply of skilled workers. There are three main workforce issues that electronics manufacturers have to deal with: insufficient continuous education, not many available candidates with relevant and proper technical expertise and a poor industry image amongst younger employees.

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Indeed, 60 per cent of UK 16-24-year-olds were disinterested in working in manufacturing, a fact reflecting a wider recruitment challenge the sector currently experiences.

The speed with which Foxconn has been able to find substitute expertise in Taiwan and elsewhere testifies to how the best manufacturing companies need to have flexible, geographically diversified talent networks that provide a rapid response to an unexpected workforce disruption.