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Taiwanese national security officials are pushing Apple Inc‘s AAPL supplier Foxconn to unwind its $800 million investment in Chinese chipmaker Tsinghua Unigroup, according to a Financial Times report.
What Happened: A senior Taiwanese government official involved in national security issues told the publication that the deal would definitely not go through.
The development comes as Taipei seeks to align itself more closely with the U.S. after Nancy Pelosi visited the island nation last week in the face of escalating threats from Beijing.
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The world’s largest contract electronics manufacturer, Foxconn, announced its investment last month that would it the second-largest shareholder in Tsinghua.
The Taiwanese cabinet commission has yet to formally review the investments, according to the report citing an unnamed person who was briefed on the matter. He said the officials from the National Security Council and the Mainland Affairs Council believe the deal needs to be blocked.
Earlier, a Reuters report, citing the Taiwanese government deputy executive secretary of the Economy Ministry, noted that Foxconn could be fined T$25 million ($837,577) if it pursues its deal with Tsinghua.
Apart from Apple, Foxconn supplies to big techs like Alphabet, Inc. GOOGL GOOG, Dell Technologies, Inc. DELL, and Sony Group Corporation SONY.
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Image and article originally from www.benzinga.com. Read the original article here.