Taiwanese company Foxconn, known as the world’s largest iPhone maker, announced that it has sold its entire stake in Chinese conglomerate Tsinghua Unigroup, the agency reported. Reuters.
The transaction was first recorded through Xingwei, a subsidiary of Foxconn in China. It turned out that 99% of Xingwei is controlled by Foxconn Industrial Internet Co Ltd, a legal entity registered in China.
Taiwan officials only recently learned that Xingwei owns shares in the Chinese state-owned Tsinghua Unigroup and requested Foxconn to give up these assets, according to agency sources.
Reuters clarified that the Taiwanese company did not initially seek approval from its government before purchasing shares of the Chinese conglomerate. “Foxconn violated the law governing the island’s relationship with Beijing,” one of the agency’s sources said.
A Foxconn spokesperson revealed that the company has sold shares to Chinese company Yantai Haixiu for at least 5.38 billion yuan ($772 million).
The Tsinghua Unigroup conglomerate includes key companies for Chinese officials such as flash memory manufacturer Yangtze Memory Technologies (YMTC) and mobile processor manufacturer UNISOC Communications.
It was previously reported to Foxconn investment 500 million dollars to build new factories in India. The investments will be used to launch new production lines for the production of iPhone smartphones and iPad tablets.