Apple supplier Foxconn, officially known as Hon Hai, said it will cooperate with Chinese authorities on investigations, following a report that officials are conducting tax audit inspections and reviewing land use of Foxconn subsidiaries.
State media Global Times reported on Sunday, citing unnamed sources, that multiple offices of Hon Hai’s subsidiaries across China had been subjected to tax audits and on-site investigations into land use. The report did not elaborate on the investigations.
Hon Hai Technology Group is the world’s largest contract electronics manufacturer. The company assembles consumer products like Apple’s iPhones.
“Legal compliance everywhere we operate around the world is a fundamental principle of Hon Hai Technology Group (Foxconn). We will actively cooperate with the relevant units on the related work and operations,” the company said in a statement on Sunday.
Hon Hai’s Taipei-listed shares fell 3.29% in early Monday morning trade.
Hon Hai share performance
The investigations come as Foxconn founder Terry Gou bids to become Taiwan’s next president. Beijing claims that the self-governed island is part of its territory.
In August, Gou announced that he was entering Taiwan’s 2024 presidential elections as an independent candidate after again failing to secure the nomination for the main opposition Kuomintang party earlier this year. He dropped a previous presidential bid in 2019 after the KMT selected a different candidate as its nominee.
Gou stepped down as Foxconn chief in 2019 and resigned as a company board member in September.