In a fresh development, Foxconn subsidiary Yuzhan Technology has sent back around 300 Chinese engineers from its India facility, people familiar with the matter told ET. This marks the second instance in recent months where the Taiwanese contract manufacturer has recalled Chinese staff from India.
Earlier in July, Foxconn had also withdrawn a similar number of Chinese engineers and technicians from its iPhone manufacturing units in India.
Yuzhan Technology is currently setting up a ₹13,180 crore ($1.5 billion) display module assembly unit in Tamil Nadu, a key part of Apple’s supply chain diversification strategy as more iPhone production shifts out of China amid potential US tariff hikes.
According to sources, Foxconn informed the Indian government that the directive to send back the engineers came suddenly. Around 60 additional Chinese engineers who were scheduled to travel to India have also been told not to proceed.
Beijing has reportedly asked Foxconn chairman Young Liu to submit a detailed report on its India investments.
Despite the disruption, industry insiders believe the impact on operations will be limited. Foxconn has been proactively building contingency plans by mobilizing engineers from Taiwan and other regions to mitigate potential disruptions from geopolitical frictions.
Meanwhile, India and China appear to be undergoing a diplomatic reset. The two countries have recently agreed to measures aimed at easing border tensions, resuming direct flights, restoring business links, and exploring cooperation in strategic areas such as rare earths. Reports also suggest New Delhi may consider easing visa restrictions for Chinese business professionals.
⚠️ Disclaimer: This report is based on information from ET and industry sources. Official statements from Foxconn was not available at the time of publication. This content is for informational purposes only and should not be taken as investment, business, or diplomatic advice.
