Taiwan Government Halts Foxconn's China Semiconductor Investment, Demands "Prior Approval"

[Image source=Reuters Yonhap News]

Apple iPhone assembler Foxconn's attempt to invest in a Chinese semiconductor company has been blocked by the Taiwanese government.

According to major foreign media and Taiwanese press on the 14th, Foxconn's Chinese listed subsidiary, 'Foxconn Industrial Internet,' plans to invest 9.8 billion yuan (approximately 1.9 trillion KRW) to acquire shares in Chinese semiconductor giant Tsinghua Unigroup in order to enter the semiconductor manufacturing industry.

In response, Taiwanese authorities notified Foxconn to obtain prior approval.

Lee O-lu, Deputy Minister of Taiwan's Ministry of Economic Affairs Investment Commission, said the day before, "We contacted Foxconn" and emphasized, "We reminded them that this matter must be reviewed before taking any action." He added that violating the Taiwanese government's policy could result in a fine of 25 million New Taiwan dollars (approximately 110 million KRW).

This move by the Taiwanese government comes amid growing concerns within Taiwan that China is intensifying economic espionage activities as it reveals strong ambitions in the advanced semiconductor industry.

Meanwhile, the U.S. government has decided to promote the so-called 'Chip 4 Alliance' among four countries? the United States, South Korea, Taiwan, and Japan? to address semiconductor supply chain issues, and has requested the South Korean government to inform by the end of August whether it will participate.

This content was produced with the assistance of AI translation services.