Taiwan fines iPhone maker Foxconn for unauthorised mainland investment - South China Morning Post

Foxconn, formally known arsenic Hon Hai Precision Industry, said successful a filing to the Taiwan Stock Exchange connected Thursday that the concern successful question was made done an affiliated concern arm, Xingwei (Guangzhou) Industrial Fund, which is 99 per cent controlled by its mainland China-listed unit, Foxconn Industrial Internet.

Foxconn, which has respective factories connected the mainland manufacturing products specified arsenic Apple’s iPhone, said the concern determination was made by managers astatine the money and the steadfast was incapable to corroborate the timeline of the deal. It denied that it had intentionally avoided seeking anterior support from Taiwanese authorities, adding that it had since proactively reported the woody to the Investment Commission and was cooperative during the investigation.

The Taipei-based institution said successful December that Xingwei would merchantability its holdings astatine Unigroup, 1 of the mainland’s largest spot makers.

Taiwan’s economical ministry said connected Thursday that it meted retired a mild punishment partially due to the fact that it recovered nary motion of exertion outflow to the mainland and nary important interaction connected the island’s economy.

The ministry besides said that Foxconn had invested much than NT$20.4 cardinal successful Taiwan successful the past 3 years, with much backing committed for the adjacent 2 years, including a further NT$15 cardinal for home facilities, factories and equipment, arsenic good arsenic probe and development.

Taiwan is becoming progressively wary of having its prized semiconductor technologies – including immoderate of the world’s astir precocious ones – fall into the hands of entities successful mainland China, which has been shoring up its spot manufacture successful hopes of reducing its reliance connected overseas technology.

Taiwanese companies are presently prohibited from mounting up their astir precocious foundries connected the Chinese mainland.