Taiwan’s top security officials are warning that Beijing is orchestrating a systematic campaign to acquire the island’s cutting-edge semiconductor technology and skilled workers as part of efforts to circumvent international trade restrictions.
According to a new report from Taiwan’s National Security Bureau presented to legislators, China’s pursuit of chip expertise has grown more aggressive as Beijing seeks independence in advanced semiconductor production while facing escalating technology competition with the United States.
The island nation, which Beijing considers part of its territory, regularly discovers and dismantles Chinese operations illegally attempting to recruit semiconductor professionals and high-tech specialists. Taiwan maintains stringent regulations preventing its most sophisticated technologies from reaching China.
In their briefing to lawmakers, security officials detailed how China attempts to “lure” Taiwan’s technology sectors, particularly artificial intelligence and semiconductor companies, into establishing or maintaining business operations on the mainland.
“It also continues to use indirect channels to poach Taiwanese talent, steal technology, and procure controlled goods, with the aim of obtaining key core technologies and products such as Taiwan’s advanced-process chips, thereby breaking through international technological containment.”
China’s Taiwan Affairs Office has not responded to requests for comment regarding these allegations. Beijing maintains its position that Taiwan represents a Chinese province that will ultimately fall under mainland control.
The island serves as headquarters for TSMC, the globe’s largest contract semiconductor manufacturer and a key supplier to major corporations like Nvidia and Apple.
Beyond technology theft, the security report warns that China plans to deploy various unconventional tactics, including artificially generated content and fabricated polling data, to meddle in Taiwan’s upcoming local elections at year’s end.
Government computer networks faced more than 170 million attempted cyber intrusions during the first three months of 2024, according to the document reviewed ahead of Director-General Tsai Ming-yen’s scheduled legislative testimony on Wednesday.
“It cannot be ruled out that the Chinese Communist Party is laying the groundwork to interfere in Taiwan’s year-end elections, with the intent of expanding intelligence collection, surveillance, and data theft,” the report said.
Military tensions also continue escalating around the island nation.
During the opening quarter of this year, Taiwan’s defense systems tracked over 420 Chinese military aircraft operating in surrounding airspace, while naval forces conducted coordinated operations in 10 “joint combat readiness patrols,” security officials documented.
The report characterizes China’s Communist leadership as facing increased internal and external challenges, including economic difficulties and international strategic competition.
“Nevertheless, it continues to employ a range of hybrid threats against Taiwan, including military intimidation,” the report added.
Taiwan’s administration dismisses Beijing’s territorial claims, maintaining that only the island’s residents possess the authority to determine their political future.
