Foxconn to sell stake in Tsinghua Unigroup, faces fine
A Chinese subsidiary of Taiwanese contract electronics manufacturer Hon Hai Precision has said it will sell its minority investment in Chinese chip conglomerate Tsinghua Unigroup.
Hon Hai Precision Industries, whch trades under the name Foxconn, made the investment in struggling Tsinghua Unigroup without Taiwan’s approval and is now liable to a fine of up to NT$25 million (about US$800,000), according to reports.
Debt-ridden Tsinghua Unigroup, one of China’s largest semiconductor conglomerates, was acquired by Beijing Zhiguangxin Holding in July 2022 providing a number of subsidiaries with a life line for continued operation. These firms include Unisoc – the merger of Spreadtrum Communications and RDA Microelectronics – and Yangtze Memory Technology Co. (YMTC), which is one of China’s most successful startups.
Beijing Zhiguangxin Holding was supported in its buy-out by Foxconn with a 9.8 billion yuan (about US$1.5 billion) investment, through its Shanghai-listed subsidiary Foxconn Industrial Internet (see Tsinghua Unigroup buy-out keeps Unisoc alive with Foxconn tie).
Foxconn announced it would be selling its stake in Tsinghua Unigroup on Friday, The next day reports referencd unnamed sources from within the Taiwanese government saying the company would be fined over the investment.
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