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Hon Hai’s Procurement of Huawei 4G Equipment Were Shelved By Taiwan Government

By Korbin Lan
Published: May 09,2014

TAIPEI, Taiwan- Ambit Microsystems, a subsidiary of Hon Hai group, want to purchase 4G base station equipment from China's Huawei, but the application has been on hold by Taiwan's National Communications Commission (NCC). Hon Hai chairman Terry Gou have expressed strong protest and hope to be approved within a week.

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For Gou protests, NCC vice chairman Yu Hsiao-cheng said that he could understand the heavy financial burden of investing in billions of 4G networks, and as authority have the responsibility to give a clear answer as soon as possible, NCC will work with national security department to make a decision in accordance with national security considerations.

But Gou questioned that Huawei's equipment can be used in Singapore, there is no reason not to use in Taiwan. He added, Huawei is one big customer of Foxconn, many products and parts are made by Foxconn, even its chips came from TSMC. If the Government is afraid of national security issues, they can send someone to supervise.

Gou believes that by using Huawei's equipment can increase competitiveness in low-cost advantage, national security should not be a problem. He also revealed that Huawei has promised to Hon Hai, all purchased equipment will be made in Taiwan, which can create job opportunities for Taiwan.

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