Apple’s largest iPhone manufacturer Foxconn’s subsidiary Yuzhan Technology has recalled about 300 Chinese engineers from its India operations, says an Economic Times report. This marks the second such instance in recent months. On July 2, reports surfaced that Foxconn had recalled a similar number of engineers and technicians from its iPhone factories in India. Quoting people aware of the matter, the report says that Beijing has allegedly asked Foxconn chairman Young Liu to prepare a report on the company’s investments in India. The development comes as the launch of iPhone 17 series nears. Apple is expected to unveil the 2025 iPhone lineup in September.According to one source, the company had to send back 300 engineers and cancel plans for 60 more who were expected to arrive in India.Another person cited in the report said the actual number of recalled engineers could be “slightly lesser” but confirmed that Foxconn had been preparing for such disruptions.“There isn’t really much of an impact being anticipated,” the person said.“Foxconn has been proactive to get engineers from countries like Taiwan and elsewhere to offset the impact that could come with such disruptions.”

Foxconn expresses concerns over India plans

The company is currently setting up a Rs 13,180 crore display module assembly unit in Tamil Nadu.“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,” one person told ET. According to the ET report, Foxconn, in its communication with the government, also mentioned hurdles that it believed were being created for its India expansion plans.In May, Foxconn had told the stock exchange that it would invest $1.5 billion in Yuzhan Technology to strengthen Apple’s manufacturing shift out of China, which has been hit by tariffs.In a related news, Foxconn is shifting its focus from consumer electronics to the felid of artificial intelligence. The Taiwanese tech giant is moving towards building AI servers which power everything ranging from cloud computing to generative AI. According to a report by Business Insider, Barclays analysts Jiong Shao, Lian Xiu Duan, and Xinyao Song said, “The company has grown from its legacy business of building smartphones or assembling computers for the likes of Apple to being a critical player in not only AI servers but also in emerging new product categories such as EVs and humanoid robots”.