Foxconn unit to sell stake in Chinese chip firm
Taiwan’s Foxconn, the world’s largest contract electronics maker, said its subsidiary in China has agreed to sell its entire equity stake in embattled Chinese chip conglomerate Tsinghua Unigroup.
Taiwan has turned a wary eye on China’s ambition to boost its semiconductor industry and is tightening legislation to prevent what it says is China stealing its chip technology.
Foxconn, a major Apple Inc supplier and iPhone maker, disclosed in July it was a shareholder of Tsinghua Unigroup.
Foxconn did not seek approval from the Taiwan government before the investment was made and authorities believe it violated a law governing the island’s relations with China, people familiar with the matter have previously told Reuters.
Foxconn said in a late night statement to the Taipei stock exchange that Xingwei, 99% controlled by its China-listed unit Foxconn Industrial Internet Co Ltd, has agreed to sell its holdings for at least 5.38 billion yuan ($772 million) to a Chinese company called Yantai Haixiu.
Xingwei controls a 48.9% stake in a different entity that holds a 20% stake in the vehicle owning all of Unigroup.
In a statement on Saturday, Foxconn said as the year-end approached, the original investment had “remained unfinalised”.
“In order to avoid uncertainties from further delays or impact to investment planning and the flexible deployment of capital, the Xingwei Fund will transfer its entire holding in Shengyue Guangzhou to Yantai Haixiu,” it said.
“After the transfer is completed, FII will no longer indirectly hold any equity in Tsinghua Unigroup.”
Tsinghua Unigroup did not immediately respond to a request for comment.
Published in The Express Tribune, December 18th, 2022.
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