No. it will not. Why should it?
Place it as AI file.
Thank you. I'm trying to understand what happens to the linked AI file when converting to PDF. Does the artwork get converted to images or embedded in the PDF?
The AI file, saved with PDF compatibility, includes a PDF.
Images of that file become images in the exported PDF.
Artwork and Text remain as it is.
If you use transparency effects and you reduce transparency upon export from InDesing it could be happen that artwork will be rasterized and exported as an image.
If you don’t use transparency effects or if you export without flattening transparency (like export as PDF/X-4) no artwork will be rasterized although the effects often are rasterized, but they have been rasterized in Illustrator before on the document raster effect settings you have chosen in Illustrator.
The best would be to give it a try and make a research on your exported PDFs with different settings.
Thanks! That helps me understand.