TAIPEI (Taiwan News) — The Foxconn Technology Group was taking part in a NT$43.54 billion (US$1.46 billion) investment in Chinese semiconductor maker Tsinghua Unigroup, but the Ministry of Economic Affairs (MOEA) cautioned that the deal needed government approval, reports said Wednesday (July 13).
According to analysts, the Taiwan iPhone contract manufacturer’s interest in the Chinese company was linked to its more recent electric vehicle (EV) ventures. China occupies half the global market for EVs, with sales last year surging to 209% from the previous year, CNA reported. In addition, China was also the world’s largest market for semiconductors, likely to provide an eager market for Tsinghua Unigroup products, analysts said.
However, the MOEA’s Investment Commission said Wednesday that any investment in China exceeding US$50 million, especially when involving sensitive sectors such as semiconductor contract manufacturing, IC design, and chip testing and packaging, needed to be approved in advance. The government department added it had not received any related notice from Foxconn, CNA reported.
Tsinghua Unigroup once boasted it wanted to buy Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC), but the Chinese company recently fell on hard times. Its current reorganization was approaching its completion, with Foxconn reportedly planning the investment through an affiliate in cooperation with another company.
