Taiwan’s government has announced it will fine Foxconn, the world’s largest electronics contract manufacturer and Apple’s main contractor, for unauthorized investments in the Chinese chipmaker, even after the Taiwanese firm said it would sell its stake, News.ro reported, citing Reuters. .

Taiwan is closely monitoring China’s drive to develop its semiconductor industry and is tightening legislation to prevent Chinese theft of chip technology.

Foxconn, a major supplier and maker of Apple’s iPhone, announced in July that it is a shareholder in Chinese chip conglomerate Tsinghua Unigroup.

Foxconn said late Friday that its Chinese subsidiary has agreed to sell its entire stake in Tsinghua Unigroup.

Taiwan’s economy ministry responded by saying its investment commission, which must approve all foreign investment, would ask Foxconn on Monday for a “full explanation” of the investment.

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