Taiwan weighs Foxconn fine for China chip investment
The Hindu
Foxconn said this week it has become a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup via a 5.38 billion yuan ($797 million) investment by a subsidiary
Taiwan's government is considering fining tech giant Foxconn up to T$25 million ($835,600) over its investment in a Chinese chip conglomerate without first getting regulatory approval, two sources briefed on the matter said on Friday.
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Foxconn, the world's largest contract electronics maker, said this week it has become a shareholder in embattled Chinese chip conglomerate Tsinghua Unigroup via a 5.38 billion yuan ($797 million) investment by a subsidiary.
The investment comes as Taiwan turns a wary eye on China's ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology.
Foxconn did not seek prior approval from the Taiwan government before the investment was made and authorities believe it has violated a law governing the island's relations with China, a person familiar with the matter told Reuters.
Regulators are weighing whether to hand Foxconn the "maximum" fine possible, which is $T25 million, due to the large size of the Chinese investment, the person added,
Foxconn referred Reuters to an earlier filing on the stock exchange, saying it will deliver the documents to the Economy Ministry's Investment Commission in the near future.