World's largest contract manufacturer of electronics, Taipei, Taiwanese-based Foxconn Technology Group is being probed by Chinese authorities, the media has reported. The company is also the biggest assembler of Apple iPhones and one of the largest employers in China. Foxconn is known locally as Hon Hai Precision Industry Co. in China and manufactures millions of iPhone units from its Zhengzhou facility, also known as iPhone city. According to a report by Nikkei Asia, which quoted state-run media outelt Global Times, Chinese authorities have conducted tax audits on "key enterprises" of Foxconn in Guangdong and Jiangsu provinces, and that the Ministry of Natural Resources has investigated land use at such bases in Henan and Hubei provinces.
"Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn)," the company was quoted as saying.
"We will actively cooperate with the relevant units on the related work and operations."
The investigation into Foxconn comes weeks after company founder Terry Gou in August announced an independent bid for the Taiwan presidential election that is slated to be held in January 2024. Terry has resigned from his seat on the board of Foxconn.
The particular Foxconn base in Guangdong province subject to the tax investigation has not been revealed. However, the company has a hub in the province that oversees facilities in mainland China and handles R&D and production of certain products.
Foxconn's shares fell nearly 3 per cent at one point on Monday morning in Taipei, while Foxconn Industrial Internet, the iPhone maker's most important China-listed subsidiary, was down 10 per cent in Shanghai.
Meanwhile, Foxconn is looking to significantly boost its presence in India by doubling its workforce and investment within the next year, a report said last month. The Taiwan-based tech giant has been rapidly increasing its operations in India, investing in manufacturing facilities, particularly in the southern regions of the country, aiming to diversify away from its reliance on China.
The firm operates an search iPhone manufacturing facility in Tamil Nadu, employing a considerable workforce of 40,000 individuals.