Taiwan says Foxconn needs govt approval for any China chip firm investment

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TAIPEI : Taiwan's Foxconn, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday.Taiwan media has reported that Foxconn's China-listed unit Foxco

TAIPEI : Taiwan's Foxconn, the world's largest contract electronics maker, would need Taiwanese government permission if its unit were to invest in embattled Chinese chip conglomerate Tsinghua Unigroup, a government official said on Thursday.

The island's government has become increasingly cautious about China's ambition to boost its semiconductor industry and has proposed new laws to prevent what it says is China stealing its chip technology, amid rising concern in Taipei that Beijing is stepping up its economic espionage. Rio Lu, deputy executive secretary of Taiwan's Economy Ministry's Investment Commission, told Reuters that on Wednesday they had been in contact with Foxconn and"reminded them that the case needs to be reviewed before doing anything".

Foxconn, formally called Hon Hai Precision Industry Co Ltd and a major assembler of iPhones for Apple Inc, said in a brief statement sent to Reuters late on Wednesday that it will handle the case"in accordance with the rules". It did not elaborate.Originating as a branch of China's prestigious Tsinghua University, Tsinghua Unigroup emerged in the previous decade as a would-be domestic champion for China's laggard chip industry.

 

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