Foxconn's $9 billion bailouts saved the top Chinese chipmaker from losing its business. However, the iPhone assembler's newly acquired stake in the state-backed Tsinghua Unigroup may be an issue.
(Photo : SAM YEH/AFP via Getty Images)
The Foxconn logo is displayed on a Foxconn building in Taipei on January 31, 2019.
Foxconn Industrial Internet Company decided to invest in the Chinese tech firm through the fund handled by the financial firm Wise Road Capital.
Some anonymous individuals familiar with the latest investment of Foxconn said that the Apple partner paid around $788 million for a minority stake in the Chinese SoC maker.
Foxconn $9 Billion Bailout Saves China's Top Chipmaker
According to Bloomberg's latest report, the billion-dollar investment made by Foxconn is a huge deal since Apple is looking for new memory chipset sources for its next-gen iOS smartphones.
(Photo : Photo by Sean Gallup/Getty Images)
HANOVER, GERMANY - MARCH 04: The stand of Taiwanese electonics giant Foxconn promotes green and energy saving business practice at the CeBIT technology fair on the first day the fair opened to the public on March 4, 2008 in Hanover, Germany. CeBIT, the world's largest technology trade fair, will run from March 4-9.
Previously, the giant iPhone maker tested a sample of NAND flash storage manufactured and developed by Yangtze Memory Technologies Co., an SoC maker located in Hubei, China.
As of writing, memory chipsets are considered the "gateway" for more advanced chipmaking methods.
Experts claimed that before manufacturers can produce efficient memory SoCs, they are required to increase their production capabilities, as well as conduct more investments.
Now that Foxconn saved the top Chinese SoC developer, there's a high chance that Tsinghua Unigroup will allow it to use its memory chipsets.
Foxconn's Stake Acquisition May Be an Issue
9To5Mac reported that although the latest billion-dollar investment made by Foxconn is beneficial for the top SoC maker in China, the stake acquisition it created can still be an issue.
This is because the shares acquired by the iPhone assembler reportedly didn't receive proper approval from the Taiwanese government.
Experts claimed that officials already view the deal as sensitive since it should have asked for approval from the country's investment watchdog before completing the stake ownership.
If you want to see further details about the stake acquisition issue of Foxconn, you can visit this link.
Previously, a Foxconn iPhone plant was recently closed after workers protested.
On the other hand, Foxconn's Chinese facility recruited more workers, offering better bonuses to those who accepted the job offers.
For more news updates about Foxconn and other partners of Apple, always keep your tabs open here at TechTimes.
Related Article: Foxconn Acknowledges Improving Supply Chain in 2022 | Can We See iPhone 14 Soon?
This article is owned by TechTimes
Written by: Griffin Davis
