TAIPEI (Taiwan News) —  Over the past two months, the Taiwanese tech firm Foxconn has recalled more than 300 Chinese engineers from facilities in southern India.

The reshuffle of employees leaves only a small number of Taiwanese technicians to manage the factories, which analysts say could hinder the production of components for Apple smartphones and computers, Bloomberg reported on Thursday. The recall reportedly began in May. 

The reasons for the recall are not entirely clear, but may be related to Beijing’s recent efforts to enforce stricter controls on critical technologies and talent working in foreign countries. A contributing factor may also be Taiwan’s pursuit of increased cooperation with India. 

The reshuffle occurs amid shifting global supply chains due to US tariffs. In light of China’s drive to protect its domestic tech industry and the rapid growth of India’s high-tech manufacturing sector, the move may be an effort by Beijing to reduce illicit technology transfers abroad and to strengthen its domestic talent base.

The reduced workforce in India will require more time to train new factory technicians, which could affect Apple, per Bloomberg. The workload for Taiwanese engineers managing the facilities has also increased, and there are concerns that efficiency may be affected. 

An unnamed source familiar with the matter told Bloomberg that the quality of Apple products produced in India will not be impacted. Foxconn reportedly informed the Indian government in May that it would be withdrawing its Chinese staff; however, reasons for the change were not provided. 

Representatives from Apple and Foxconn both declined to comment on the situation. 

In May, shortly after the reshuffle reportedly began, Foxconn was given the green light for a new wafer production facility in India’s Uttar Pradesh. The facility is a joint venture project with the HCL Group and is expected to begin operations in 2027. 

To make up for the shortage of skilled engineers, Foxconn staff will be shifting engineers from Vietnam and Taiwan to India, per Bloomberg.