Foxconn Electronics (Hon Hai Precision Industry) has become the second-largest shareholder of Chi Lin Technology, a subsidiary of the Chi Mei Group, by investing a total of NT$825 million to acquire a total of 33 million shares.

Chi Lin's largest shareholder is the Chi Mei Group with an over 50% stake.

Chin Lin originally planned to list on the emerging stock market in the third quarter of 2010 and move up to the mainboard of the Taiwan Stock Exchange (TSE) in the second half of 2011, but terminated the process at the beginning of October.

It is understood that Shi Wen-long, founder of the Chi Mei Group, is the main reason behind the sudden termination of the process. Shi, who was the founder and first chairman of Chi Lin, fears that minor shareholders may lose money after affiliates of Chi Mei list on the mainboard of the TSE. Hence, he is always less-supportive of Chi Mei's affiliates listing. Although Chi Lin has always aimed to be listed, with the efforts from Shi and other major shareholders, Chi Lin decided to end the plan. It has nothing to do with Foxconn becoming a major shareholder.