萬國法律事務所

To strengthen its market competitiveness, Xinzhi Motor intended to acquire 19.96% of the shareholdings in FUKUTA by NT$ 344 million. However, Investment Commission, MOEA concerned that this acquisition will be detrimental to Taiwan’s development of smart electric vehicles and thus rejected the application. This is the first case of refusal to the application for Chinese investment in Taiwan’s auto parts industry.

The Investment Commission of MOEA recently approved 7 applications of inward investment from China, foreign indirect investment, and Taiwan’s outward investment to China. It is worth to mention that the Commission disapproved Xinzhi Motor’s application for acquiring 19.96% of shareholdings in FUKUTA. The Executive Secretary, Mr. Chang, at the Commission expressed that Xinzhi Motor has a monopoly on auto stator core in the world with a market shares of 80% in China and 20% in the international market. FUKUTA is the exclusive supplier of auto motor for Tesla Motors. This acquisition may be detrimental to Taiwan’s development of smart electric vehicles, so the application was rejected.

The official at Industrial Development Bureau, MOEA emphasized that FUKUTA has the crucial expertise in the manufacture of electric vehicles’ motor and joined the supply chain of Tesla Motors due to the government’s long-term assistance. Last year, FUKUTA sold more than 26,000 auto motors, and the estimated sales volume in 2016 will reach 600,000. The official hopes that the critical technology will not be obtained by Chinese enterprises.