Daily Management Review

Taiwan fines Foxconn for unauthorised investment in China


Taiwan's Ministry of Economic Affairs announced a fine against Foxconn, one of the country's largest technology companies, for violating local laws governing foreign investment and relations with the People's Republic of China.

The fine was imposed because Foxconn failed to notify Taiwanese authorities of its plans to invest in Chinese chipmaker Tsinghua Unigroup in advance.

Foxconn announced in July that it had purchased a stake in Tsinghua Unigroup through one of its Chinese subsidiaries, raising concerns among regulators. To avoid "uncertainty," Foxconn announced that it would sell its stake in the Chinese company for $772 million.

However, this did not prevent Taiwanese authorities from conducting an investigation. Foxconn had violated local law by failing to notify the Foreign Investment Commission of its plans, according to the Ministry of Economic Affairs, and would be punished. The ministry will request full details of Foxconn's purchase and sale of a stake in the Chinese company on December 19 in order to calculate the amount of the fine.

source: bloomberg.com