Taiwanese iPhone maker confirms over £670m stake in ailing Chinese chip firm
Taiwanese iPhone manufacturer Foxconn has confirmed today it has bought a considerable stake in China’s top chip maker Tsinghua Unigroup, after media speculation earlier in the week.
Foxconn, also known as Hon Hai Precision Industry, said it had bought a 17.8 per cent stake in the beleaguered chip firm, in an investment it added is worth more than £674m.
It comes as state-backed Tsinghua Unigroup undergoes a $9.4bn (£7.9bn) bailout by state-backed Beijing Jianguang Asset Management, after it accumulated over $30bn (£25.3bn) in debt.
The investment will require approval by Taiwan’s ministry of economics affairs, as well as its technology team.
Although Foxconn is yet to file an application for the deal, which came to its attention after a report in local newspaper Liberty Times, onlookers expect the investment to raise national security concerns – similar to activity in the UK’s own semiconductor industry.
China has repeatedly claimed that democratically ruled Taiwan is its own territory and has ramped up military and political pressure to try and force the island to accept Chinese authority.
While the recent surge in demand has led to a faltering supply, Foxconn – also known as Hon Hai Precision Industry Co. – has been actively working to develop its semiconductor offering since 2019, when it appointed the boss of its chipmaking arm, Young Liu, as chairman.
The electronics giant has also been in talks with Saudi Arabia for a $9bn (£7.6bn) site since March, according to a Wall Street Journal report.