Foxconn have informed the taipei stock exchange in a late night statement that xingwei, 99% controlled and held by its chinese-listed unit Foxconn industrial internet co ltd that they have agreed to sell its holding for at least 5.38 billion yuan ( $772 million)
Taiwanese Foxconn which is the world’s largest contract electronic manufacturer conveyed on Friday that its subsidiary in china have agreed to sell its entire stake holdings in the Chinese chip conglomerate tsinghua unigroup to Chinese company yantai haixu
Taiwan has been deeply concerned by the huge ambition of China to boost its semiconductor industry. Taiwanese government has been extra cautious of China since Beijing’s policy against the island country turned aggressive and Taiwan is tightening legislations to prevent any state-of-the-art technology theft by china.
Foxconn before making the investment did not seek any approval from the Taiwanese government and the authorities believe that it has violated a law regarding the island’s relations with China, people familiar with this matter have conveyed it.
Taiwanese law explains that the island country can prohibit any investments in China regarding National security and deep-state technology. Violators of this law will be severely punished.
Neither Foxconn nor the Tsinghua unigroup responded to this news immediately.
Tsinghua unigroup originated as a branch of China’s prestigious Tsinghua University which was supposed to be a would be domestic champion of China’s stalled chip industry however it failed to show any significant results as it has yet to produce any global leader in semiconductor industry
As the tension between china-taiwan is on the rise after the aggressive stance of Beijing towards the island nation. There could be more such disinvestment in the coming future.