Foxconn Arm Recalls 300 Chinese Engineers From India Operations: Report

Foxconn Arm Recalls 300 Chinese Engineers From India Operations: Report

SUMMARY

Foxconn has informed the government that it has been directed to immediately repatriate all the Chinese expatriates employed by Yuzhan Technology

Last month, Foxconn recalled over 300 Chinese engineers and technicians from its India production facilities

The engineers were involved in setting up a display module assembly facility in Tamil Nadu, where Yuzhan is investing INR 13,180 Cr

Foxconn’s subsidiary Yuzhan Technology has reportedly recalled around 300 Chinese engineers from its Indian manufacturing plant, the second such move by the Apple supplier in recent times.

Meanwhile another 60, who were scheduled to travel, have been reportedly told not to come.

An ET report, citing sources, said that Foxconn has informed the government that it has been directed to immediately repatriate all the Chinese expatriates employed by Yuzhan Technology to build the component ecosystem and factory.

According to the report, the engineers were involved in setting up a display module assembly facility in Tamil Nadu, where Yuzhan is investing INR 13,180 Cr. The unit forms part of Foxconn’s broader strategy to expand its iPhone manufacturing hub in India, with multiple new assembly plants, including one in Bengaluru, expected to come online soon.

Inc42 has reached out to Foxconn and the story will be updated based on its responses.

This is not the first time Foxconn has had to repatriate staff. Reports in July indicated that the Taiwanese contract manufacturer recalled over 300 Chinese engineers and technicians from its iPhone facilities in India. However, Foxconn has reportedly prepared for such events and is bringing in engineers from Taiwan and other countries to minimise risks to its Indian projects.

The report further added that Foxconn Chairman Young Liu has been asked by Chinese officials to provide a report outlining the group’s investment roadmap in India.

Foxconn Charts Bold Expansion Course In India

The Taiwanese manufacturing giant has already started small-scale production of Apple’s iPhone 17 at its Bengaluru plant. 

In 2023, Foxconn acquired a 300-acre plot close to Bengaluru airport, where it has set up a facility across Doddaballapur and Devanahalli taluks, its second-largest manufacturing hub after Longhua facility in China.

The company exported iPhones worth $3.2 Bn from India, with an average of 97% gadgets shipped to the US between March and May this year.

Meanwhile, Foxconn reportedly initiated discussions with the Tamil Nadu government to set up a 200-acre manufacturing unit as part of its strategy to scale up its battery production in India. In addition, the company is progressing on plans to build a plant in UP’s Greater Noida.

The India-China Diplomatic Seesaw

This comes amid growing challenges for India and China, both of which have been caught in the crossfire of Donald Trump’s global trade war. While both the Asian countries are facing pressure from the US, they are simultaneously working towards resolving their diplomatic issues. 

In a recent development, China’s ambassador to India, Xu Feihong, expressed strong opposition to the US tariff measures imposed on New Delhi and stressed the importance of closer cooperation between India and China.

In May, Foxconn stated plans to invest $1.5 Bn in Yuzhan as part of a bigger shift of its iPhone production footprint away from China, amid global trade uncertainties and US tariff threats.

During his two-day India tour, the Chinese foreign minister Wang Yi met Indian external affairs minister S. Jaishankar. After the meeting, China eased export curbs on rare earth magnets and minerals for India in 2025. The curb was initially introduced due to national security concerns amid bilateral tensions.

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