🟦Foxconn withdraws from China SemiconductorFoxconn

Foxconn sells all of Shiguang Group's shareholdings

🟦Foxconn withdraws from Chinese semiconductor company Shiguang Group

Taiwan’s Foxconn(Hon Hai Precision Industry Co., Ltd.) announced on December 2022, 12, that it has agreed to sell all of its shares in Shiguang Group. In July 15, Foxconn announced that it would invest in Shiguang Group, a major Chinese semiconductor company that is undergoing management reconstruction, through its subsidiaries listed on the Shanghai market in China. Taiwanese companies have been attracting attention because the government requires prior screening for investment by Chinese companies.

Tsinghua Unigroup

It was established in 1993 by Tsinghua University Science and Technology Development Corporation. It was the core corporate group of China’s semiconductor industry. Under former real estate tycoon Zhao Weiguo, the company has repeatedly acquired semiconductor and high-tech companies in China, but has gone bankrupt. The business has been inherited by Beijing Zhiguangcore Holding, which was launched by several investment funds in 2022.

  • Companies that were under the Shiko Group
    • YMTC (YangtzeMemory Technology)
      • China’s only mass-produced 3D-NAND memory
    • Unisoc
      • Fabless semiconductor company for smartphone SoC

🟦 Foxconn‘s investment is

Taiwanese authorities require high-tech companies, such as semiconductor design, to pre-screen their investments in mainland China. In particular, it prohibits Taiwanese companies from building state-of-the-art semiconductor factories in China, and fines can be up to about 1 million yen. Claiming that the investment in Shiguang Group was allowed to do so, the Taiwanese authorities announced that they would fine Foxconn. Even if the investment is withdrawn due to the sale of shares, it does not change the fact that the investment was made.

Foxconn invested in Shiguang Group through Fujikang Industry Mutual Network (FII), which is listed on the Shanghai market. It was a form of independent companies listed in mainland China raising funds and investing locally. However, it seems that they could not escape the regulations of the Taiwanese authorities.

🟦Summary

Foxconn sells all of Shiguang Group’s shareholdings, but Taiwanese authorities fine Foxconn

There seems to be a great sense of crisis about the emergency in Taiwan.

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