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Taiwan test case for investing in China chipmaking

A Hon Hai Technology Group company’s investment in China’s Tsinghua Unigroup has drawn the attention of Taiwanese regulators and raised new questions about semiconductor-related technology transfers to mainland China.

Tsinghua Unigroup is China’s largest semiconductor company while Hon Hai Precision Industry, the core company of the Hon Hai Technology Group, is the world’s largest electronics contract manufacturer.

Headquartered in Taipei, Hon Hai Precision Industry, also known as Foxconn, is best known as the primary assembler of Apple iPhones.

Foxconn Industrial Internet, a Hon Hai subsidiary headquartered in Shenzhen and traded on the Shanghai Stock Exchange, recently invested in Tsinghua Unigroup through a Chinese investment fund without informing the Investment Review Committee of Taiwan’s Ministry of Economic Affairs.