Foxconn unit to sell entire equity stake in Tsinghua Unigroup

Taiwan’s Foxconn, the world’s largest contract electronics maker, said on Friday its subsidiary in China has agreed to sell its entire equity stake in embattled Chinese chip conglomerate Tsinghua Unigroup.

Foxconn said in a statement to the Taipei stock exchange that Xingwei, 99% controlled by its China-listed unit Foxconn Industrial Internet, has agreed to sell its holdings for at least 5.38 billion yuan ($771.79 million).

Foxconn disclosed in July that it was a shareholder of Tsinghua Unigroup. Xingwei controls a 48.9% stake in a different entity that itself holds a 20% stake in the vehicle that owns all of Unigroup.