The Financial Times reported Wednesday that Taiwan’s national security officials want Apple supplier Foxconn to unravel a $800 million investment in Tsinghua Unigroup.
A senior Taiwanese official involved in national security told the report that the sale won’t go through. (https://on.ft.com/3A8mzuM)
Taiwan, the world’s largest contract electronics manufacturer, is wary of China’s semiconductor ambitions. Taipei has proposed new laws to stop China from stealing its semiconductor technology because of worries that Beijing is increasing industrial espionage.
The island’s government prevents enterprises from developing modern foundries in China to prevent outsourcing.
China, which considers Taiwan its territory, is pressuring Taiwan.
A person knowledgeable on the subject told the FT that Taiwan’s cabinet committee has not formally reviewed the investments. National Security Council and Mainland Affairs Council officials feel the agreement should be banned.
Foxconn said it had filed reports to Taiwan authorities regarding the investment and would continue talks. It was vague.
Reuters didn’t immediately hear from Tsinghua Unigroup.
Increasing tensions in the Taiwan Strait have reduced the deal’s prospects, a company insider told the FT.
Beijing slammed U.S. House Speaker Nancy Pelosi’s trip to the Chinese-claimed self-ruled island as a danger to peace and stability.
Foxconn’s subsidiary invested $798 million in Tsinghua Unigroup last month.