Yuzhan Technology, a Foxconn subsidiary, has recalled approximately 300 Chinese engineers from its Indian manufacturing facility, marking the second such incident for the Taiwanese technology giant in recent months, ET reported industry sources as saying.
As per the ET report, the development coincides with improving diplomatic relations between India and China. In July, reports emerged that Apple supplier Foxconn had similarly recalled around 300 Chinese engineers and technicians from its iPhone production facilities in India.
Yuzhan Technology is establishing a Rs 13,180 crore display module assembly unit in Tamil Nadu. Foxconn announced in May its $1.5 billion investment in the Yuzhan unit as part of relocating iPhone manufacturing from China amid potential US tariff threats.
The recalls occur during a diplomatic reset between Beijing and New Delhi, with both nations facing trade pressure from Washington.
ET quoted a source as saying, "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."
"They said this is the latest incident and is one that is being targeted at them. The company has had to send back 300 engineers this time. Also, there were 60 other engineers who were to come to India but have been asked not to come now," the source added.
Beijing has also requested Foxconn chairman Young Liu to submit a report on the company's Indian investments, as per the report.
A second source told ET that a "slightly lesser numbers" of Chinese engineers were actually recalled.
However, operational impact is expected to be minimal. "Foxconn has been proactive to get engineers from countries like Taiwan and elsewhere to offset the impact that could come with such disruptions," another source noted.
Meanwhile, India and China are implementing measures to strengthen ties, including easing border tensions, resuming direct flights, and exploring trade cooperation in strategic sectors like rare earths.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
