Taiwan security officials want Foxconn to drop stake in Chinese chipmaker, says Financial Times

Taiwan, the world's largest contract electronics maker, has become increasingly cautious about China's ambition to boost its semiconductor sector

Taiwan's national security officials want to persuade Apple Inc's supplier Foxconn to unwind an $800 million investment in Chinese chipmaker Tsinghua Unigroup, the Financial Times reported on Wednesday.

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The deal will definitely not go through, the report said, citing a senior Taiwanese government official involved in national security issues.

Taiwan, the world's largest contract electronics maker, has become increasingly cautious about China's ambition to boost its semiconductor sector. It has proposed new laws to prevent what it says is China stealing its chip technology, amid rising concerns in Taipei that Beijing is stepping up its economic espionage.

The island's government prohibits companies from building their most advanced foundries in China to ensure they do not offshore their best technology.

Taiwan faces mounting pressure from China, which considers the democratically governed island its own territory.

Taiwan's cabinet commission has yet to formally review the investments, the FT report on Wednesday quoted an unnamed person who was briefed on the matter as saying, adding that officials from the National Security Council and the Mainland Affairs Council believe the deal needs to be blocked.