Taiwan raids Chinese firms over chip industry secrets theft

TAIPEI: Taiwanese investigators have raided 16 Chinese-funded companies suspected of illegally poaching high-tech talent to steal secrets from the island’s semiconductor industry.

Taiwan dominates global chip manufacturing, producing over half of the world’s chips and nearly all high-end semiconductors.

China is aggressively developing advanced chips for AI systems while facing US export restrictions.

Hundreds of officials searched 70 locations and questioned 120 people between July 15 and August 6, according to Taiwan’s Ministry of Justice Investigation Bureau.

No charges have been filed yet, but the probe is ongoing, said a bureau investigator surnamed Gu, who noted similar investigations occur around 25 to 30 times annually.

The Hsinchu District Prosecutors Office stated that illegal mainland-funded firms had been stealing Taiwan’s high-tech secrets through talent poaching.

Targeted companies allegedly used “diverse and highly harmful infiltration methods,“ authorities revealed.

Among the raided firms were Goertek, a key Apple supplier, and US-listed VNET Group.

Taiwan has repeatedly accused China of espionage, while Beijing claims the island as its territory and threatens force to reclaim it.

Earlier this year, Taiwan blacklisted Huawei and SMIC, restricting exports of advanced chip technology to China.

Local firms must now seek government approval before shipping high-tech products to blacklisted entities like Huawei or SMIC.

In March, Taiwan’s Investigation Bureau confirmed probes into SMIC and other Chinese firms over suspected illegal talent recruitment. – AFP

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