Tech

Foxconn needs government approval to invest in Chinese chip maker, Taiwan says


Taiwan’s Foxconn, the world’s largest contract electronics maker, will need permission from the Taiwanese government if its unit is to invest in Chinese chip group Tsinghua Unigroup, a government official said. know on Thursday. Taiwanese media have reported that Foxconn, China-listed unit, Foxconn Industrial Internet Co Ltd, plans to spend CNY 9.8 billion (about Rs 11,600) to buy a stake in Unigroup, as part of its plan. Foxconn’s plan to enter the chip manufacturing field.

The island’s government has become increasingly wary of China’s ambitions to boost the semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology, amid The scene in Taipei raised concerns that Beijing was stepping up economic espionage.

Taipei bans companies from building their most advanced foundries in China to ensure they are not exploiting their best technology.

Rio Lu, executive deputy secretary of the Investment Committee of Taiwan’s Ministry of Economy, told Reuters that on Wednesday they were in contact with Foxconn and “remind them that the case should be reviewed before doing anything”.

Lu said that if Foxconn violates the rules, it could be fined 25 million TWD (about 7 billion VND).

Foxconn, officially known as Hon Hai Precision Industry and the main assembler of iPhone models Because Apple, said in a brief statement sent to Reuters late Wednesday that it would handle the case “in accordance with the rules”. It’s not clear.

Foxconn has not officially confirmed any investment plans in the Chinese group.

Originally a branch of the prestigious Tsinghua University of China, Tsinghua Unigroup emerged in the last decade as the domestic champion for China’s lagging chip industry.

But the company fell into debt under former chairman Zhao Weiguo, causing the company to default on several bond payments at the end of 2020, eventually going into bankruptcy.

The group has yet to create any global leaders in the semiconductor sector.

A Unigroup spokesperson did not respond to a request for comment.

Electronics giant Foxconn is looking to produce automotive chips as it enters the electric vehicle market. The company is looking to acquire chip factories around the globe as chip shortages around the world are affecting manufacturers of goods ranging from cars to electronics.

© Thomson Reuters 2022




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