Taiwan's Hon Hai pulls out of Huawei deal over 'security threat'
Published on Jul 2, 2014 8:34 PM
TAIPEI (AFP) - Taiwan tech giant Hon Hai said Wednesday it has pulled out of a deal to buy 4G equipment from Huawei after the government warned that the Chinese company posed a national security threat.
Taiwan raised those concerns in March after Hon Hai announced the US$178 million (S$ 221 million) deal, saying telecom equipment purchased from Huawei could be used for cyber espionage.
Ambit Microsystems, a company affiliated with Hon Hai, had applied for permission from the telecom regulator to import Huawei equipment after it won a 4G spectrum license.
But Ambit on Monday pulled out of the deal with Huawei, which offers cheaper products than rivals such as Nokia.
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