Taiwan authorities want semiconductor maker Foxconn undo an investment valued at $800 million in a Chinese company. The information was released on Wednesday by the Financial Times newspaper.
Foxconn, one of the main providers of American technology to Apple, announced on July 14 the acquisition of an indirect stake in Beijing Zhiguangxin Holding, an entity that in turn controls Tsinghua Unigroup, a company dedicated to the production of chips.
But at a time when tensions are growing between Taiwan and China, The Taiwan authorities want the operation not to go ahead. According to a source close to the matter, the commission that analyzes the investments made by Taiwanese companies has yet to formalize the matter, but the need to block the agreement will have already been conveyed.
The announcement of this operation even prompted warnings from Taiwan’s investment commission that Foxconn, formally known on the island as Hon Hai, could face a fine of US$832,000. All because you will not have submitted this agreement for approval. The company may not have broken the rules, this source admits to the Financial Times, but the investment is seen as “controversial” as it has political and security implications.
“It is now clear that they have put this question to a national security level, prospects [de operação avançar] they are shrinking,” a source told the Financial Times. “With the heightened tension in Taiwan, this seems even more difficult.”
Taiwan-based Foxconn ensures the assembly line of various technological equipment for other brands, being known mainly as a supplier to Apple. However, a large part of Foxconn’s factories are located in China.
After Nancy Pelosi, Speaker of the US House of Representatives, visited Taiwan, tensions with China increased. In the days leading up to the American’s visit to Taipei, warnings and criticism poured in from Beijing. Beijing also launched military exercises at the time of the visit, which Taipei sees as an excuse for China to prepare for an invasion of the island.
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Source: Observadora
