The Economic Democracy Union yesterday called on the Ministry of Economic Affairs to fine Hon Hai Precision Industry Co (鴻海精密) and reject its investment in a Chinese state-backed chip company.
Hon Hai, which is known as Foxconn globally, last month announced a 5.38 billion yuan (US$778 million) investment in China’s Tsinghua Unigroup (紫光集團) by its subsidiary, Foxconn Industrial Internet Co Ltd (富士康工業互聯網), through several smaller investments in Chinese companies.
The company did not obtain prior regulatory approval in Taiwan for the purchase, leading to calls for punishment and greater scrutiny.
Photo: CNA
The ministry’s Investment Commission said at the time that it was reviewing the application and might fine the company for failing to apply for approval in advance.
A month and a half has passed, and the ministry has yet to issue any fines, the union told a news conference at the Legislative Yuan in Taipei.
“Does the state’s power retract when it encounters a large conglomerate?” union researcher Hsu Kuan-tze (許冠澤) asked.
The commission mandates that investments in China involving chip design or other sensitive industries in excess of US$50 million must first obtain regulatory approval, meaning that this case clearly warrants a fine, Hsu said.
Hon Hai’s claim that the investment does not involve any chip fabs due to Tsinghua’s new corporate structure is a smokescreen, Hsu said.
The semiconductor industry is not just about making chips, but involves the entire process from design to packaging and testing, he said, adding that no matter Tsinghua’s structure, as long as it is part of the supply chain, it is a chipmaker.
The Chinese-language Economic Daily News reported that hundreds of companies were included in the information Hon Hai submitted to the commission about its investment, Hsu said.
A separate investigation by Business Today in 2020 found that three of Tsinghua’s top five businesses were chip design, manufacturing and packaging/testing, he said, adding that it is in direct competition with Taiwan’s chip industry.
Union convener Lai Chung-chiang (賴中強) criticized the timing of the purchase, as the US is aiming to bolster its chip industry to compete against China.
Under the US’ CHIPS and Science Act signed into law earlier this month, companies that receive subsidies from Washington to support semiconductor manufacturing are barred from signing any “major deals” to expand production in China for 10 years, Lai said, calling Hon Hai’s investment a pawn in China’s effort to break through the US technological barricade.
Through the firm’s other ventures, Hon Hai engineers would learn from close cooperation with the US, but if the company also works with Tsinghua, these trade secrets could feasibly be passed along to China, he said, recommending that the ministry reject the investment.
Taiwan is to receive the first batch of Lockheed Martin F-16 Block 70 jets from the US late this month, a defense official said yesterday, after a year-long delay due to a logjam in US arms deliveries. Completing the NT$247.2 billion (US$7.69 billion) arms deal for 66 jets would make Taiwan the third nation in the world to receive factory-fresh advanced fighter jets of the same make and model, following Bahrain and Slovakia, the official said on condition of anonymity. F-16 Block 70/72 are newly manufactured F-16 jets built by Lockheed Martin to the standards of the F-16V upgrade package. Republic of China
Taiwan-Japan Travel Passes are available for use on public transit networks in the two countries, Taoyuan Metro Corp said yesterday, adding that discounts of up to 7 percent are available. Taoyuan Metro, the Taipei MRT and Japan’s Keisei Electric Railway teamed up to develop the pass. Taoyuan Metro operates the Taiwan Taoyuan International Airport MRT Line, while Keisei Electric Railway offers express services between Tokyo’s Narita Airport, and the Keisei Ueno and Nippori stations in the Japanese capital, as well as between Narita and Haneda airports. The basic package comprises one one-way ticket on the Taoyuan MRT Line and one Skyliner ticket on
Starlux Airlines, Taiwan’s newest international carrier, has announced it would apply to join the Oneworld global airline alliance before the end of next year. In an investor conference on Monday, Starlux Airlines chief executive officer Glenn Chai (翟健華) said joining the alliance would help it access Taiwan. Chai said that if accepted, Starlux would work with other airlines in the alliance on flight schedules, passenger transits and frequent flyer programs. The Oneworld alliance has 13 members, including American Airlines, British Airways, Cathay Pacific and Qantas, and serves more than 900 destinations in 170 territories. Joining Oneworld would also help boost
A new tropical storm formed late yesterday near Guam and is to approach closest to Taiwan on Thursday, the Central Weather Administration (CWA) said. Tropical Storm Pulasan became the 14th named storm of the year at 9:25pm yesterday, the agency said. As of 8am today, it was near Guam traveling northwest at 21kph, it said. The storm’s structure is relatively loose and conditions for strengthening are limited, WeatherRisk analyst Wu Sheng-yu (吳聖宇) said on Facebook. Its path is likely to be similar to Typhoon Bebinca, which passed north of Taiwan over Japan’s Ryukyu Islands and made landfall in Shanghai this morning, he said. However, it