Apple supplier Foxconn to sell stake in embattled Chinese chip firm Tsinghua Unigroup
- Foxconn said Xingwei, 99 per cent controlled by its China-listed unit, has agreed to sell its holdings for at least US$772 million
- Foxconn did not seek approval from the Taiwan government before the investment and authorities believe it violated a law governing relations with China
Taiwan has turned a wary eye on China’s ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.
Foxconn did not seek approval from the Taiwan government before the investment was made and authorities believe it violated a law governing the island’s relations with China, people familiar with the matter have previously told Reuters.
Foxconn said in a late night statement to the Taipei stock exchange that Xingwei, 99 per cent controlled by its China-listed unit Foxconn Industrial Internet Co, has agreed to sell its holdings for at least 5.38 billion yuan (US$772 million).
Xingwei controls a 48.9 per cent stake in a different entity that holds a 20 per cent stake in the vehicle owning all of Unigroup.
Foxconn provided no explanation for the decision in its filing. Neither Foxconn nor Tsinghua Unigroup immediately responded to a request for comment on Saturday.
Foxconn said in August it had a plan B if Taiwan’s government did not approve the investment, giving no details at the time.