Taiwan hardens the sector that most worries China: that of microprocessors

Foxconn offices in Taipei, Taiwan (Reuters) (Ann Wang /)

Taiwan’s national security authorities want persuading Apple supplier Foxconn to unwind an $800 million investment in Chinese chipmaker Tsinghua Unigroupas reported on Wednesday by Financial Times.

The deal will definitely not go through, the report said, citing a senior Taiwanese government official involved in national security matters.

Taiwan, the world’s largest contract electronics manufacturer, is shown increasingly wary of China‘s ambition to boost its semiconductor sector. He has proposed new laws to prevent what he says is Chinese theft of chip technology, amid growing concern in Taipei that Beijing is stepping up its economic espionage.

the island government bans companies from building their most advanced smelters in China to ensure they don’t offshore their best technology.

Taiwan faces mounting pressure from China, which regards the democratically-ruled island as its own territory.

Taiwan’s cabinet commission has yet to formally review the investments, according to the report. FT on Wednesday, citing an unidentified person who was briefed on the matter, adding that officials at the National Security Council and the Continental Affairs Council believe the deal should be blocked.

(Reuters)
(Reuters) (Tyrone Siu/)

Foxconn said in a statement that it has filed reports with Taiwan authorities about the investment and will continue to speak with government officials. He did not elaborate.

Tsinghua Unigroup did not immediately respond to a request for Reuters to make comments.

It is clear that they have raised this to the level of national security and prospects are dimmingsaid the report of FT citing a person close to the company and added that deal looks harder to pass as tensions rise across Taiwan Strait.

Tensions have risen across the Taiwan Strait after US House Speaker Nancy Pelosi visited the self-ruled Chinese island last week, something Beijing condemned as a threat to peace and security. stability.

Last month, Foxconn said it was a shareholder in embattled chip conglomerate Tsinghua Unigroup through a $798 million investment from a subsidiary.

(With information from Reuters)

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