On Saturday, Taiwan’s government said it would fine Foxconn, the world’s largest contract electronics maker, for an unauthorised investment in a Chinese chip maker even after the Taiwanese firm said it would be selling the stake.
Taiwan has turned a conscious eye on China’s ambition to boost its semiconductor industry and is enforcing legislation to prevent what it says is China stealing its chip technology.
A major Apple Inc supplier and iPhone maker, Foxconn, disclosed in July it was a shareholder of castellated Chinese chip conglomerate Tsinghua Unigroup.
Late Friday, Foxconn said in a filing to the Taipei stock exchange its subsidiary in China had agreed to sell its entire equity stake in Tsinghua Unigroup.
Taiwan’s Economy Ministry said in response that its investment commission, which has to approve all foreign investments, will ask Foxconn on Monday for a “complete explanation” about the investment.