A subsidiary of Foxconn, Yuzhan Technology, has reportedly recalled approximately 300 Chinese engineers from its manufacturing facility in India. This marks the second instance of such a withdrawal in recent months, with a similar number of engineers being recalled from iPhone production facilities in July.

According to the Economic Times, sources suggest that Beijing has requested a report from Foxconn Chairman Young Liu regarding the company's investments in India. One source stated that Foxconn has informed the government that they were 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. Another source indicated that the number of engineers recalled might be "slightly lesser".

These engineers were reportedly stationed at a display module assembly facility being established in Tamil Nadu. This facility is a key part of Foxconn's strategy to expand iPhone manufacturing in India. Yuzhan Technology is investing ₹13,180 crore to establish this unit.

The recall coincides with improving diplomatic relations between India and China, including easing border tensions, resuming direct flights, and exploring trade cooperation in strategic sectors. In May 2025, following a meeting between the Chinese and Indian foreign ministers, China eased export curbs on rare earth magnets and minerals for India.

Sources indicate that Foxconn is proactively seeking engineers from Taiwan and other countries to mitigate the impact of these disruptions.

In August 2024, Foxconn invested approximately Rs 1,200 crore into its Karnataka facility, known as Foxconn Hon Hai Technology India Mega Development. The Karnataka government has announced Foxconn intends to invest Rs 25,000 crore in a manufacturing facility near Dodda Ballapur, which is expected to create 40,000 jobs. This plant is planned to be Foxconn's second-largest globally, after its plant in China.

Also, in August 2024, Foxconn inaugurated a residential complex in Tamil Nadu's Vallam Vadagal Industrial Park to provide sustainable living for its employees.

In February 2024, Foxconn invited bids for the construction of a chip assembly and testing plant in India and has committed an initial funding of Rs 1,200 crore for the project.