TAIPEI (Taiwan News) — The Ministry of Economic Affairs (MOEA) is considering a fine of up to NT$25 million (US$834,000) for Foxconn Technology Group because it failed to give advance notice of an investment in Chinese semiconductor maker Tsinghua Unigroup, reports said Friday (July 15).

The world’s largest contract manufacturer of electronics said it had taken part in a investment in the Chinese semiconductor maker after the latter’s post-bankruptcy reorganization. The investment of 5.38 billion yuan (NT$23.85 billion) occurred via a subsidiary, Foxconn announced Thursday (July 14).

The MOEA said there was a clear case of investing first and reporting later, which would be punishable under the law, though it would determine the amount of the fine later, based on the documentation the company provided, CNA reported. The minimum fine was NT$50,000.

Foxconn could either redress the situation before filing an official application for the investment, which was less likely to happen, or pay a fine, according to the MOEA. After payment of the fine, the project still needed to pass a review by the ministry’s Investment Commission, which could result in positive advice, or in a rejection, forcing Foxconn to abandon the project, the CNA report said.

Any investment by a Taiwan business in China exceeding US$50 million, especially when involving sensitive sectors such as semiconductor contract manufacturing, IC design, and chip testing and packaging, needs to receive MOEA approval in advance.