Foxconn's unit Yuzhan Technology has returned about 300 Chinese engineers from its Indian operations, The Economic Times reported. This is the second such recall in recent months. In July 2, it was said that an equal number of engineers and technicians were brought back from Foxconn's iPhone production facilities in India.
Quoting sources close to the issue, the report observes that Beijing reportedly instructed Foxconn chairman Young Liu to prepare a detailed report of the investments made by the company in India. The move comes at a time when Apple's iPhone 17 series is set to be launched in September 2025.
One of the sources disclosed that the firm was forced to recall 300 engineers while also abandoning plans to bring 60 more employees to India.
Another person cited in the article included that the actual number of recalled engineers could be "slightly lesser," but affirmed that Foxconn had been preparing for such disruptions.
“There isn’t really much of an impact being anticipated,” the person said.
“Foxconn has been proactive to get engineers from countries like Taiwan and elsewhere to offset the impact that could come with such disruptions.”
The company is currently setting up a Rs 13,180 crore display module assembly unit in Tamil Nadu.
“Foxconn has informed the government that they have been asked to send back all the Chinese expat employees whom Yuzhan Technology brought to India to set up the component ecosystem and factory with immediate effect,” one person told ET.
According to the ET report, Foxconn, in its communication with the government, also mentioned hurdles that it believed were being created for its India expansion plans.
Earlier in May, Foxconn informed the stock exchange that it would invest $1.5 billion in Yuzhan Technology to aid Apple's plans to diversify its manufacturing hub outside of China, which has been under pressure due to tariffs.
Concurrently, Foxconn has also been directing its business interest away from conventional consumer electronics and towards the quickly expanding sphere of artificial intelligence. The Taiwanese electronics giant is increasingly focusing on manufacturing AI servers, which are critical in enabling technologies ranging from cloud computing to generative AI.
Business Insider reported a statement by Barclays analysts Jiong Shao, Lian Xiu Duan, and Xinyao Song that said, "The company has developed from its heritage business of making smartphones or manufacturing computers for the likes of Apple to becoming an essential part in not only AI servers but also new emerging product categories like EVs and humanoid robots."
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