Image: Reuters Berita 24 English - According to a government official, Foxconn , the largest contract electronics manufacturer in the world,...
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| Image: Reuters |
Berita 24 English - According to a government official, Foxconn, the largest contract electronics manufacturer in the world, would require approval from the Taiwanese government if its unit decided to invest in the troubled Tsinghua Unigroup, a Chinese semiconductor behemoth.
According to Taiwanese media, Foxconn Industrial Internet Co Ltd, a division of Foxconn with a China listing, intends to invest 9.8 billion yuan ($1.46 billion) for a share in Unigroup as part of its strategy to expand into the chip manufacturing industry.
In light of growing worries in Taipei that Beijing is ratcheting up its economic espionage, the island's administration has become more wary of China's drive to expand its semiconductor industry and has suggested new regulations to stop what it claims is China stealing its chip technology.
To prevent corporations from offshoring their greatest technology, Taipei forbids them from constructing their most sophisticated foundries in China.
According to Rio Lu, the Investment Commission of Taiwan's Economy Ministry had contact with Foxconn on Wednesday and "reminded them that the case needs to be assessed before doing anything," Lu told Reuters.
According to Lu, if Foxconn violates the laws, it might be punished T$25 million ($837,577). She added that her department has previously informed Wang Mei-hua, the minister of economy, about this plan.
A major iPhone assembler for Apple Inc., Foxconn, formally known as Hon Hai Precision Industry Co Ltd, said in a terse statement provided to Reuters late on Wednesday that it will handle the case "in accordance with the rules." Nothing more was provided.
No formal confirmation of Foxconn's intention to invest in the Chinese company has been made.
Foxconn owns 99 percent of a Chinese company called Xingwei, according to statistics on Qichacha, a Chinese website that checks business registration records.
According to Qichacha statistics, Xingwei owns a 48 percent share in a different company that owns a 20 percent investment in the company that is the sole owner of Tsinghua Unigroup.
Foxconn chose not to comment on the information. Requests for comment from a Unigroup spokeswoman went unanswered.
Tsinghua Unigroup, which began as a division of China's esteemed Tsinghua University, rose to prominence in the preceding decade as a potential domestic champion for the country's struggling chip industry.
However, under the leadership of former chairman Zhao Weiguo, the company's debt increased, causing it to fall behind on a number of bond payments in late 2020 and eventually declare bankruptcy.
There are currently no world leaders in the semiconductor industry produced by the firm.
Foxconn, a major producer of electronic components, is eager to enter the automotive chip industry as it expands into the electric car space. The business has been looking to buy chip manufacturing facilities all over the world as a global chip shortage unnerves manufacturers of items ranging from electronics to vehicles.
1. Chinese Yuan Renminbi = 6.7175
$1 is equal to 29.8480 Taiwan dollar
