Taiwan has started to bolster its semiconductor defence as China’s navy retreats from its shores. In this case, authorities could put pressure on Foxconn to cancel the $ 800 million contract it had with a Chinese chipmaker. Hon Hai Precision was the previous name for Foxconn. Taiwan is also attempting to prevent its finest engineers from becoming trapped in Chinese enterprises on the mainland.
Taiwan chip deal with Chinese company
When it was discovered that a subsidiary of the world’s largest manufacturer of contract electronics owned a 20% investment in China’s former chip king Tsinghua Unigroup, the company was put on high alert. According to Reuters, the official is facing a fine of $8,36,000 for failing to obtain the required licenses, and Taiwan’s Investment Commission, which evaluates significant acquisitions in China, has expressed its unhappiness.
Know why the tension was increased
Increasing tensions with Beijing as a result of Speaker of the US House of Representatives Nancy Pelosi’s recent travel to Taiwan in August have put the accord in peril. Along with placing limitations on agricultural exports, China, which claims Taiwan, has conducted a number of military exercises surrounding the island nation.