Foxconn China-based subsidiary, Yuzhan Technology, has recalled approximately 300 Chinese engineers from its Indian operations, marking the second such withdrawal in recent months.
The engineers were stationed at a display module assembly facility being set up in Tamil Nadu, part of Foxconn’s broader strategy to expand iPhone manufacturing in India.
The move comes amid evolving diplomatic dynamics between India and China and growing scrutiny of cross-border industrial collaboration.
Sources familiar with the matter confirmed that the engineers were asked to return to China with immediate effect.
An additional 60 engineers who were scheduled to arrive in India have also been instructed not to travel.
The recall follows a similar incident in July, when Foxconn pulled back a comparable number of Chinese engineers from its iPhone production facilities in India.
Foxconn Strategic Investment in Tamil Nadu Faces Operational Disruption
Yuzhan Technology is currently investing ₹13,180 crore to establish a display module assembly unit in Tamil Nadu.
The facility is a key component of Foxconn’s plan to shift more iPhone manufacturing out of China, driven by concerns over potential U.S. tariffs and supply chain diversification.
In May 2025, Foxconn announced a $1.5 billion investment in the Yuzhan unit, signaling its long-term commitment to India as a manufacturing hub.
Despite the recall, sources suggest that the operational impact may be limited.
Foxconn has reportedly activated contingency plans, including sourcing engineers from Taiwan and other regions, to maintain project timelines.
The company has also communicated to Indian authorities that the recall was prompted by directives from Beijing, which has asked Foxconn Chairman Young Liu to submit a detailed report on the group’s investments in India.
Diplomatic Reset Between India and China Influences Corporate Decisions
The timing of the recall coincides with a broader diplomatic reset between India and China.
Both countries have recently taken steps to ease long-standing border tensions and resume direct flights.
They are also exploring trade cooperation in strategic sectors, including rare earths.
Industry observers believe the recall may signal a broader shift in China’s approach to outbound industrial engagement.
This is especially evident in sectors that involve heightened geopolitical sensitivities.
Foxconn has not released an official statement regarding the recall. However, internal communications indicate that the company considers it a deliberate and targeted move.
The Ministry of Electronics and Information Technology has yet to respond to queries regarding the development.
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