Apple’s supply chain in India has been greatly disrupted by China’s most recent export restrictions, highlighting Beijing’s capacity to use vital chokepoints to stifle India’s growing manufacturing aspirations. Foxconn’s Telangana plant, which assembles Apple AirPods, is at the heart of the disturbance. Dysprosium, a rare earth element used for the earphones’ magnets, is currently in limited supply.
The recent delay in China’s approval of exports of dysprosium to India—a clear move in Beijing’s tightening control over rare earth mineral flows that are essential for the production of electronics—is the cause of this shortage.
These restrictions are but a portion of a larger range of Chinese policies. Foxconn ordered the recall of more than 300 Chinese engineers and technicians from India’s iPhone factories in recent weeks, allegedly in response to pressure from Chinese authorities.
The pullout highlights the significant reliance of India’s emerging electronics centers on Chinese technological know-how and specialized manufacturing equipment, in addition to endangering the launch schedules for upcoming iPhone models built in India.
Production at the factory did temporarily slow, but Foxconn insists that there isn’t yet a complete disruption. The business has asked Indian officials for assistance in obtaining the required export permits from China as soon as possible. The disruption is particularly noticeable as Foxconn and Apple increase their investments in massive manufacturing plants in India, establishing the nation as a viable substitute for China in the face of escalating trade tensions between the US and China and the possibility of tariffs on goods originating from both countries.
Industry analysts point out that even while India’s electronics assembly sector is growing quickly, the nation still relies significantly on China for upstream components including printed circuit boards, rare earths, specialty chemicals, and essential production equipment.
China produces more than 90% of the world’s magnets but more than 60% of its rare earths, putting India and multinational corporations looking to diversify their supply chains at strategic risk as tensions rise.
The export restrictions imposed by the Chinese government, which affect both workers and materials, amply illustrate how geopolitical competition has now influenced the dynamics of electronics production worldwide. The Foxconn incident serves as a caution to India that its “Make in India” aspirations are susceptible to outside pressure until it constructs redundant supply networks that are less susceptible to unforeseen foreign constraints and deepens its domestic capabilities beyond assembly.
