Following news that the Chinese government has opened investigations into the company, Foxconn's shares dropped 3.4 percent in early trading today, the most they have dropped in more than three months, according to reports.

Foxconn, a Taiwanese company, is known as Hon Hai Precision Industry Co. in China. Millions of devices are produced in its Zhengzhou factory, often known as iPhone city, making it the largest iPhone assembler in the world.

Foxconn stated that upholding the law was a 'fundamental principle' of all of its business dealings and that it would 'actively cooperate with the relevant units on the related work and operations'.

Beijing has started a number of inquiries into Foxconn's activities in China, especially its facilities in the country's central and southern regions.

According to reports, tax authorities are looking into Hon Hai's subsidiaries in the provinces of Jiangsu and Guangdong, and officials from the Natural Resources department are investigating the use of land at its sites in the provinces of Hubei and Henan.

The company said that it will work with Chinese authorities on investigations. But no specifics were provided.

Foxconn employs roughly 200,000 workers in its Zhengzhou facility in the Henan province, where it produces the majority of iPhones, though it also has other smaller production facilities in southern China and India.

Terry Gou, the wealthy founder of Foxconn who resigned as company chief in 2019 and no longer participates in day-to-day operations, is running as an independent candidate despite trailing in the polls.

He has claimed that only he, with his significant professional and personal contacts in China and the United States, can keep peace after the island's dominant Democratic Progressive Party brought the island to the verge of conflict with China through its antagonistic policies.