File photo: Apple's supplier -- Foxconn
File photo: Apple's supplier -- Foxconn

Taiwan to fine Foxconn for unauthorised China investment

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.

Foxconn banner seen at a factory
Source: Tech Crunch

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.

Source: Live mint

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.