Foxconn China Subsidiary Recalls 300 Engineers from India

According to a report by Economic Times (ET), Foxconn’s Chinese subsidiary Yuzhan Technology has recalled 300 engineers from its India-based facility as diplomatic ties between India and China begin to improve. This marks the second such engineering pullback as Beijing intensifies its scrutiny over outbound investments by Chinese companies.

Foxconn’s Yuzhan Technology Faces Second Major Recall

Yuzhan Technology, a subsidiary of Foxconn, has recently withdrawn 300 Chinese engineers from its project site in Tamil Nadu. This move follows a similar recall earlier where 300 engineers were sent back to China from Foxconn’s iPhone manufacturing facility. Yuzhan is currently in the process of establishing a ₹13,180 crore display module assembly facility in southern India. The recall appears to have been driven by a directive from Chinese officials who have also requested a report from Foxconn chairman Young Liu regarding the group's Indian investments.

Apple Supplier Working Around Diplomatic Challenges

Although significant, the recall is unlikely to impact the company’s broader operations. Foxconn has reportedly been proactive in deploying skilled engineers from Taiwan and other countries to mitigate potential labour or geopolitical disruptions. This strategic move has allowed it to maintain progress at Indian facilities while navigating international challenges.

Read More: Foxconn Starts iPhone 17 Production at its Newly Operational Bengaluru Facility!

Improving Relations Between India and China

This development comes as India and China engage in renewed diplomatic efforts aimed at easing border tensions and resuming direct business and transportation links. Reports suggest an agreement to initiate trade cooperation in strategic areas such as rare earths. Additionally, India may ease visa restrictions for Chinese business professionals, which could facilitate smoother collaborations in the future.

Foxconn’s Investment Shift from China to India

Earlier in May, Foxconn committed a $1.5 billion investment into Yuzhan Technology to support its India expansion amidst growing trade tensions with the US. Despite the diplomatic fluctuations, India remains a significant part of Foxconn’s diversification strategy outside China, especially concerning iPhone manufacturing.

Conclusion

Foxconn recalling 300 engineers from its India unit underscores the geopolitical sensitivities affecting cross-border investments. However, the company’s contingency planning and ongoing diplomatic efforts between India and China may minimise the long-term impact on operations and bilateral trade opportunities.

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