Apple’s effort to expand iPhone production in India has run into fresh trouble after Foxconn recalled around 300 Chinese engineers from a factory in Tamil Nadu, Bloomberg reported. The setback highlights how difficult it is for Apple to move its supply chain away from China, even as it gears up to launch the new iPhone 17 lineup from India.

The engineers were recalled from a plant operated by Yuzhan Technology, a Foxconn subsidiary that makes enclosures and display modules for older iPhones. The site only began production a few months ago. To fill the gap, Foxconn has started bringing in Taiwanese engineers, according to people familiar with the matter.

This marks the second time in recent months that Foxconn has sent Chinese staff home from its Indian operations. In July, hundreds of engineers and technicians were also pulled from iPhone factories across the country. The reasons for the latest recall remain unclear, but analysts say it shows how dependent Apple still is on Chinese expertise for high-precision manufacturing.

The move comes amid rising geopolitical tensions. Reports earlier this year suggested Beijing has been encouraging regulators to tighten restrictions on technology transfers and equipment exports to India and Southeast Asia, moves seen as aimed at slowing the shift of advanced manufacturing out of China.

For now, Apple may soften the blow by importing displays and working with Indian suppliers for components like enclosures. Still, the absence of skilled engineers could slow its push to localize production, raising concerns about bottlenecks.

Apple has tried to expand its Indian supplier base instead of relying heavily on Chinese partners inside India. Tata Group has become a key partner and is now the only Indian company assembling iPhones. But matching the efficiency and scale of China’s supply chain remains a major challenge.

Despite these obstacles, Apple is pushing ahead. All four models of the upcoming iPhone 17 are set to be produced in India, a significant milestone for the country. Still, the latest recall underlines the fine balance Apple must strike as it navigates geopolitics, supply chain shifts, and the technical complexity of building its flagship devices.