Taiwan's government, which needs to approve all outbound investments, had not approved the deal. Taipei also prohibits companies from building their most advanced chip foundries in China to ensure they do not site their best technology offshore.
The person familiar with the situation told Reuters that the Economy Ministry would contact Foxconn on Monday to confirm the equity sale. "Even though the investment was later pulled the fact has already been established that they invested first, and they will be fined," said the source, who was not authorised to speak to the media.
"It should not take too long for Hon Hai to be punished," the source added, referring to the company's formal name, Hon Hai Precision Industry Co Ltd.Foxconn declined to comment.Taiwanese law states the government can prohibit investment in China "based on the consideration of national security and industry development". Violators of the law can be fined repeatedly until corrections are made.
Foxconn has been seeking to acquire chip plants globally as a worldwide chip shortage rattles producers of goods from cars to electronics. It is keen to make auto chips in particular as it expands into the electric vehicle market.Our Standards:
Did Foxconn copy the Fandango logo or is it just me?
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