Taiwanese officials announced Monday they are conducting investigations into 11 Chinese companies suspected of unlawfully recruiting semiconductor engineers and other technology professionals from Taiwan, as the island nation intensifies efforts to prevent technology transfers amid escalating tensions with China.
The Investigation Bureau of Taiwan reported that over 185 agents conducted searches at 49 different sites and interviewed 90 individuals during this month’s coordinated operation targeting Chinese businesses allegedly hiring Taiwanese engineers without proper authorization.
According to the bureau, the Chinese corporations being investigated concealed their true ownership by creating Taiwanese operations using foreign-funded shell companies as fronts, or by establishing unauthorized offices to illegally recruit workers and conduct business activities on the island.
China maintains claims over Taiwan, which governs itself democratically, asserting it as Chinese territory while refusing to rule out military action to gain control of the island. Taiwan rejects these territorial claims and maintains that only its citizens have the right to determine the island’s future.
Taiwan’s legal framework bans Chinese investment in certain semiconductor industry sectors, particularly chip design, while requiring government approval for other areas like chip packaging. These restrictions make it challenging for Chinese semiconductor companies to establish legitimate operations in Taiwan.
The investigation targets several major companies, including electronics manufacturer Huaqin Technology, mobile power device producer Anker Innovations, semiconductor and circuit board equipment maker Circuit Fabology Microelectronics Equipment, power semiconductor company Yangzhou Yangjie Electronic Technology Co Ltd, and chip design firm SG Micro.
None of these companies provided immediate responses when contacted for comment by Reuters.
Beijing’s pursuit of semiconductor expertise and skilled workers has grown more aggressive as Chinese leadership prioritizes achieving independence in advanced chip technology, driven by intensifying technological competition with the United States.
A specialized task force established in late 2020 has processed over 100 comparable cases involving suspected unauthorized recruitment efforts and illegal business operations conducted by Chinese companies, according to bureau officials.
