A subsidiary of Taiwan’s Hon Hai Precision Industry will dispose of its indirect minority stake in China’s semiconductor giant Tsinghua Unigroup, the latest sign that Beijing’s chip industry is becoming increasingly isolated from the rest of the world, reports Bloomberg.
Hon Hai’s China-listed Foxconn Industrial Internet will sell the shares to Yantai Haixiu IC Investment Center for not less than RMB 5.38 billion ($772 million), according to an exchange filing Friday.
Hon Hai said in a separate statement that it decided to sell the stake to avoid uncertainty because the investment still cannot be finalized. The company’s interest in the Chinese chipmaker, despite being relatively small, has triggered concerns from the Taiwan government because the state-backed Tsinghua Unigroup is one of the most prominent semiconductor companies in China.