Amid Beijing’s investment scrutiny, Foxconn unit recalls Chinese engineers from India, while ensuring operations continue without disruption.
Foxconn subsidiary Yuzhan Technology has recalled around 300 Chinese engineers from its India facility, marking the second such instance in recent months. The development comes amid ongoing diplomatic recalibration between India and China, raising questions over the impact on Foxconn’s expanding operations in the country.
Yuzhan Technology is investing ₹13.18 billion to set up a display module assembly unit in Tamil Nadu, with Foxconn having earlier announced a $1.5 billion infusion into the venture. The recall mirrors a July incident when Foxconn was reported to have sent back a similar number of Chinese engineers working at its iPhone manufacturing facilities in India.
According to people familiar with the matter, the engineers were initially brought in to support the establishment of component ecosystems and factory operations. Plans to bring an additional 60 engineers have also reportedly been halted. At the same time, Beijing has asked Foxconn chairman Young Liu to submit a detailed report on the company’s India investments.
Industry sources, however, suggested the impact may be limited, as Foxconn has been anticipating such disruptions. The company has already initiated measures to reduce reliance on Chinese staff, by bringing in expertise from Taiwan and other regions to ensure continuity of its manufacturing operations.
The recall coincides with a phase of improving diplomatic engagement between New Delhi and Beijing. Both countries are taking steps to ease border tensions, restore business links, and explore cooperation in strategic areas such as rare earths.
