A Shanghai-listed arm of Foxconn Technology Group acquired a stake in China’s top chipmaker during its $9 billion bailout, people familiar with the matter said, the latest in a series of investments the Taiwanese-run firm has made in the mainland’s semiconductor industry, reports Bloomberg.
Foxconn Industrial Internet invested in state-backed Tsinghua Unigroup through a fund it set up with investment house Wise Road Capital, according to people familiar with the deal. The fund paid about RMB 5.3 billion ($788 million) for a minority stake in Unigroup, one of the people said, asking not to be identified discussing a private deal.
The investment by the unit of Apple’s main iPhone assembler, known also as Hon Hai Precision Industry, could raise eyebrows as tensions rise in the South China Sea over issues including technology and supply chain security.