Taiwan authorities have been investigating Chinese chipmakers such as SMIC for allegedly poaching local tech talent.
The Investigation Bureau of the Ministry of Justice (MJIB) disclosed on Friday that it launched a large-scale investigation and seizure operation this month, mobilizing more than 180 investigators, raiding 34 locations and interrogating 90 people involved.
During the operation, the agency uncovered a total of 11 Chinese companies illegally poaching Taiwanese high-tech talent, including China's largest chipmaker, SMIC.
In addition to SMIC, the bureau said, the suspected offenders include JUNWELL Electronics, Aohai Technology, Cloudnix, SINOWEALTH Electronic, Shanghai TOSUN Technology, Fine Made Microelectronics, Shanghai Southchip Semiconductor, Shenzhen Torey Microelectronics, Tigo Semiconductor, and Ark Microelectronic.
Among them, SMIC is the most notable, with its global chip foundry ranking only behind TSMC and South Korea's Samsung Electronics.
In December 2020, the U.S. Department of Commerce announced that SMIC would be added to the "Entity List" for export controls. Once on the list, U.S. exporters will need to apply for a license to supply SMIC.
According to the authorities, these Chinese companies often disguise their identities by setting up operations in Taiwan under "fake Taiwanese capital" or "setting up unauthorized bases privately" or "falsely dispatching employees through manpower consultant management companies," and poach semiconductor, chip design, IC research and development, and other technical personnel on a large scale in Taiwan, seriously threatening the competitiveness of Taiwan's industry.
The MJIB alleges that SMIC set up a branch office in Taiwan, disguised as a Samoa-based company, and attempted to recruit local talent.
In fact, Taiwan prohibits mainland Chinese companies from conducting local business activities, including recruitment, without official approval.
The MJIB said it has investigated more than 100 cases of Chinese companies illegally poaching Taiwanese high-tech talent since it set up a task force in 2020.
