By Reuters | Updated: 14 July 2022
Taiwan’s Foxconn, the world’s largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday. Taiwan media has reported that Foxconn’s China-listed unit Foxconn Industrial Internet Co Ltd plans to spend CNY 9.8 billion (roughly Rs. 11,600 crore) for a stake in Unigroup, as part of Foxconn’s plans to get more into chip-making.
The island’s government has become increasingly cautious about China’s ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology, amid rising concern in Taipei that Beijing is stepping up its economic espionage.
Taipei prohibits companies from building their most advanced foundries in China to ensure they do not offshore their best technology.
Taiwan’s Foxconn, the world’s largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday. Taiwan media has reported that Foxconn’s China-listed unit Foxconn Industrial Internet Co Ltd plans to spend CNY 9.8 billion (roughly Rs. 11,600 crore) for a stake in Unigroup, as part of Foxconn’s plans to get more into chip-making.
The island’s government has become increasingly cautious about China’s ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology, amid rising concern in Taipei that Beijing is stepping up its economic espionage.
Taipei prohibits companies from building their most advanced foundries in China to ensure they do not offshore their best technology.
Foxconn has not formally confirmed any plan to invest in the Chinese group.
Originating as a branch of China’s prestigious Tsinghua University, Tsinghua Unigroup emerged in the previous decade as a would-be domestic champion for China’s laggard chip industry.
But the company fell into debt under former chairman Zhao Weiguo, prompting it to default on a number of bond payments in late 2020 end eventually face bankruptcy.
The conglomerate has yet to produce any global leaders in the semiconductor sector.
A spokesperson for Unigroup did not respond to a request for comment.
Electronics manufacturing giant Foxconn is keen to make auto chips amid its foray into the electric vehicle market. The company has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics.
© Thomson Reuters 2022
