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Foxconn chair hints at alternative if Taiwan bans investment plan in China's Tsinghua Unigroup

Young Liu defends plan as financial investment in totally reformed company

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Foxconn Technology Chairman Young Liu. 

Foxconn Technology Chairman Young Liu.  (CNA photo)

TAIPEI (Taiwan News) — Foxconn Technology Group Chairman Young Liu (劉揚偉) on Wednesday (Aug. 10) hinted at alternative plans if the government vetoes its investment in Chinese semiconductor maker Tsinghua Unigroup.

Recent media reports predicted the Ministry of Economic Affairs (MOEA) would take action against Foxconn’s project as it had failed to inform the authorities in advance.

However, Liu emphasized at an investors’ meeting Wednesday that Foxconn’s plans were merely financial, and that it had acted on a unique opportunity presented by clients and suppliers, UDN reported.

He also said the new Tsinghua Unigroup was different from its troubled predecessor as it had been thoroughly restructured. Foxconn’s interest was based on estimates that the new company would turn out a profit, according to the chairman of the world’s largest contract manufacturer of electronics.

Liu emphasized that his company’s basic principles were to work according to the law and to the rules. If the authorities did not approve the capital investment in Tsinghua Unigroup, his company would have an alternative proposal ready, he said, without providing details.