Foxconn, the world's largest contract electronics maker, said on Friday it plans to sell its entire stake in Chinese chip conglomerate Tsinghua Unigroup.

Xingwei, which is 99% controlled by Foxconn's China-listed subsidiary Foxconn Industrial Internet Co Ltd, has agreed to sell its stake for at least 5.38 billion yuan ($771.79 million), the giant said in a statement on Friday.

In July, Foxconn announced an investment of about $800 million in Unigroup to expand its footprint in semiconductor manufacturing. Xingwei controls a 48.9% stake in a different entity that itself holds a 20% stake in the vehicle that owns all of Unigroup.

Founded in 1993, Unigroup is a subsidiary of a company controlled by China's famous Tsinghua University. It entered the chip industry through the 2013 acquisition of Spreadtrum Communications, which was the second-largest Chinese fabless company.

Although lagging far behind global rivals, Unigroup has rapidly grown into a leader in China's chip industry, playing a key role in the country's initiative to increase self-sufficiency in chip production.

Since last year, Unigroup has undergone a series of bankruptcy and reorganization. Its aggressive bets in various chip companies — mostly unsuccessful bets — led to the company cross defaulting on about $3.6 billion worth of bonds by the end of 2020. Unigroup had previously made a $23 billion offer to acquire US chipmaker Micron Technology in 2015, but their offer was ultimately rejected.

After concluding the business registration of its new equity owner, directors, supervisors and general manager, the once trouble-ridden company announced in July that it has completed its year-long debt-restructuring process.