India iPhone hub hit as Foxconn recalls 300 more Chinese engineers

Foxconn subsidiary Yuzhan Technology has recalled 300 Chinese engineers from India, even as its iPhone manufacturing push in Tamil Nadu and Bengaluru continues

Foxconn subsidiary Yuzhan Technology has sent back around 300 more Chinese engineers from its Indian operations, people familiar with the matter told The Economic Times. This is the second such recall in recent months. The development comes as India and China attempt to thaw relations, even as geopolitical and trade pressures mount.

 

According to the report, the engineers were involved in setting up a display module assembly facility in Tamil Nadu, where Yuzhan is investing ₹13,180 crore. 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.

 

 

“Foxconn has informed the government that it was instructed to send back all Chinese expatriates employed by Yuzhan Technology to build the component ecosystem and factory. Around 300 engineers have returned, while another 60, who were scheduled to travel, have been told not to come," one of the people cited above, told The Economic Times.

 

The report added that Chinese authorities have also asked Foxconn Chairman Young Liu to submit a report on the group’s investment plans in India.

 

300 Chinese engineers recalled from Foxconn

This is not the first time Foxconn has had to repatriate staff. Reports in July indicated that the Taiwanese contract manufacturer recalled around 300 Chinese engineers and technicians from its iPhone facilities in India. 

 

US, China put pressure on India's iPhone manufacturing

The company’s India expansion comes as Apple seeks to diversify its supply chain after pandemic-era supply chain disruptions when Chinese lockdowns halted production. The shift was further accelerated after US President Donald Trump took office, fuelling fears of a prolonged US-China trade war.

 

However, Apple's move to India has earned the ire of both China, which has tightened its stance against Taiwanese companies shifting manufacturing to India, and the US, where Trump wants manufacturing moved back to American soil.

 

India, China move to ease diplomatic ties

The recalling of Foxconn staff also comes as India and China attempt to reset bilateral ties. Both sides have moved to ease border frictions, restore direct flights, and expand business exchanges. New Delhi is also considering relaxing visa rules for Chinese professionals.

 

Talks on cooperation in strategic sectors, including rare earths, are underway, though progress remains tentative.

 

US trade talks in limbo

Meanwhile, trade talks with the US seem to be in limbo after Trump imposed a 50 per cent tariff on Indian goods, the highest globally. The Trump administration has also been pressuring India to cease its purchase of crude oil from Russia. However, Indian officials have stated that oil purchases, along with any other trade decision, will be determined by domestic needs.

 

Foxconn iPhone manufacturing plan in India continue

Despite these headwinds, Foxconn, the world’s largest contract manufacturer for Apple, disclosed in May that it would invest $1.5 billion in Yuzhan Technology to accelerate diversification out of China.

 

Around 20 per cent of iPhones are currently assembled in India, a figure projected to rise to between 26 per cent and 40 per cent by 2027.

 

Meanwhile, in an attempt to appease the US president, earlier this month, Apple announced an additional $100 billion investment in US manufacturing. This builds to the $500 billion commitment made by the tech giant in February. The move is expected to create 20,000 jobs across 10 states.