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Taiwan likely to penalise Apple supplier Foxconn for unauthorised investment in China’s Tsinghua Unigroup: source
- Foxconn, which disclosed in July it was a shareholder in Chinese chip conglomerate Tsinghua Unigroup, said on Friday it would be selling the stake
- The company could be fined up to T$25 million (US$813,749), according to Reuters
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Foxconn Technology Group, the world’s largest electronics contract manufacturer, is likely to be fined soon by Taiwan’s government for an unauthorised investment in a Chinese chip maker, a person with direct knowledge of the situation said on Monday.
Taiwan, which Beijing views as sovereign Chinese territory, has turned a wary eye on the mainland's ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.
Foxconn, a major Apple supplier and iPhone maker, disclosed in July it was a shareholder of embattled Chinese chip conglomerate Tsinghua Unigroup, but said late on Friday it would be selling the stake. Taiwan said on Saturday it would fine Foxconn over the investment.
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Taiwan’s government, which needs to approve all outbound investments, had not approved the deal. Taipei also prohibits companies from building their most advanced chip foundries in China to ensure they do not site their best technology offshore.
02:23
iPhone 14 delays expected after days of violent protests at Foxconn Zhengzhou factory
iPhone 14 delays expected after days of violent protests at Foxconn Zhengzhou factory
The person familiar with the situation said that the economy ministry would contact Foxconn on Monday to confirm the equity sale.
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