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Taipei [Taiwan]Dec 20 (ANI): Taiwan’s government has said it will fine Apple supplier Foxconn for agreeing to sell its stake to another Chinese company, but the company still hasn’t authorized the release from China, Focus Taiwan reported. investment.
Shanghai-listed communications network equipment subsidiary Foxconn Industrial Internet Co Ltd (FII), which owns 99.99 percent of Hon Hai, could face a fine of up to NT$25 million, the Ministry of Economic Affairs said on Dec. 17.
Earlier, Foxconn said in a filing to the Taipei Stock Exchange on Dec. 16 that its subsidiary in China had agreed to sell its entire stake in Tsinghua Unigroup for no less than 5.38 billion yuan (US) sold to Yantai Haixiu Semiconductor Development Center for USD 722 million).
The next day, Foxconn issued a statement on the Taipei Stock Exchange, because the investment process has not yet been finalized, and decided to sell the equity to avoid the uncertainty of the company’s investment strategy caused by the delayed transaction. Months passed.
Another reason behind this is also to allow the company more flexibility in capital management, the company added, according to Focus Taiwan.
According to Hon Hai, Xinwei Fund owns 48.91 percent of another Chinese company and 20 percent of Beijing Zhiguangxin Holdings, which owns 100 percent of debt-laden Tsinghua Unigroup after a business restructuring.
According to Focus Taiwan, Foxconn disclosed in a statement that in July FII’s Xinwei Fund invested 5.38 billion yuan in Tsinghua Unigroup. But the decision on the investment has raised concerns that it will help bolster China’s chipmaking capabilities and boost its international competitive advantage, a move that some say would jeopardize Taiwan’s national security at a time when Taipei is building an alliance with Washington. Closer ties come amid escalating threats from Beijing.
Investment in Tsinghua Unisplendour without prior approval from Taiwan authorities At an investor meeting in mid-August, Hon Hai Chairman Liu Yongwei said the company had a backup plan to invest in Tsinghua Unisplendour if it failed to get approval from Taiwan’s regulators.
Liu said that Hon Hai believes that it is legal to invest in Tsinghua Unigroup, but if the government has concerns and does not approve retroactively, Hon Hai has contingency plans. However, he did not disclose any details of Plan B.
In recent years, Hon Hai has stepped up efforts to diversify its product portfolio through the “3 plus 3” plan, referring to three emerging industries – electric vehicles, robotics and digital health – using artificial intelligence, semiconductors and Focus Taiwan. Technology is committed to transforming from a pure-play contract electronics manufacturer to a company that can integrate its hardware and software strengths. (Arnie)
(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)
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