Aug 10 (Reuters) - Taiwan's national security officials want
to persuade Apple Inc's supplier Foxconn to
unwind an $800 million investment in Chinese chipmaker Tsinghua
Unigroup, the Financial Times reported on Wednesday.
The deal will definitely not go through, the report said,
citing a senior Taiwanese government official involved in
national security issues. (https://on.ft.com/3A8mzuM)
Taiwan, the world's largest contract electronics maker, has
become increasingly cautious about China's ambition to boost its
semiconductor sector. It has proposed new laws to prevent what
it says is China stealing its chip technology, amid rising
concerns in Taipei that Beijing is stepping up its economic
The island's government prohibits companies from building
their most advanced foundries in China to ensure they do not
offshore their best technology.
Taiwan faces mounting pressure from China, which considers
the democratically governed island its own territory.
Taiwan's cabinet commission has yet to formally review the
investments, the FT report on Wednesday quoted an unnamed person
who was briefed on the matter as saying, adding that officials
from the National Security Council and the Mainland Affairs
Council believe the deal needs to be blocked.
Foxconn said in a statement it has submitted reports to
Taiwan authorities about the investment and will continue to
talk to government officials. It did not elaborate.
Tsinghua Unigroup did not immediately respond to a Reuters
request for comment.
It is clear that they have elevated this to the national
security level and the prospects are getting dimmed, the FT
report cited one person close to the company as saying and added
that the deal looks more difficult to pass through with
increasing tensions in the Taiwan Strait.
Tensions have escalated in the Taiwan Strait after U.S.
House of Representatives Speaker Nancy Pelosi visited the
Chinese-claimed self-ruled island last week, a move that Beijing
condemned as a threat to peace and stability.
Last month, Foxconn said it was a shareholder in embattled
chip conglomerate Tsinghua Unigroup via a $798 million
investment by a subsidiary.
(Reporting by Anirudh Saligrama in Bengaluru; Additional
reporting by Jeanny Kao and Yimou Lee; Editing by Sherry