Taiwan investigates 11 Chinese firms for stealing semiconductor talent

Taiwan said on Monday that 11 Chinese firms are being investigated for alleged illegal poaching of semiconductor expertise and other high‑tech talent. The move marks a heightened efforts to curb technology outflows amid rising geopolitical tensions with Beijing.

More than 185 agents searched 49 locations and questioned 90 people this month in a coordinated investigation targeting Chinese firms. They were suspected of recruiting Taiwanese engineers in Taiwan without approval, Taiwan's Investigation Bureau said.

According to the bureau, Chinese companies under investigation disguised their ownership by setting up operations in Taiwan under the names of foreign-funded shell firms, or by establishing offices without authorization. They allegedly used these methods to recruit talent and conduct business illegally in Taiwan.

Beijing claims democratically governed Taiwan as its own territory and has never renounced the use of force to bring the island under its control. Taiwan strongly objects to China's sovereignty claims and says only the island's people can decide their future.

Taiwanese law prohibits Chinese investment in some parts of the semiconductor supply chain, including chip design. It requires reviews for other areas, such as chip packaging, making it difficult for Chinese chip companies to operate on the island legally.

The companies under investigation include electronics manufacturer Huaqin Technology, mobile power device maker Anker Innovations, semiconductor and printed circuit board equipment producer Circuit Fabology Microelectronics Equipment, power semiconductor manufacturer Yangzhou Yangjie Electronic Technology Co Ltd, and chip designer SG Micro.

The companies did not immediately respond to Reuters requests for comment.

China's scramble for chip talent and expertise has intensified as Beijing pushes for self-reliance in advanced semiconductors, amid a deepening tech rivalry with the US.

A special task force set up in late 2020 has handled more than 100 similar cases involving suspected illegal recruitment and business activities by Chinese companies, the bureau said.

Cybernews has previously reported on Chinese companies illegally recruiting top Taiwanese tech talent from major firms, including Microsoft and Intel.

The principles on which these Chinese companies operate are similar. They set up disguised entities, including foreign-registered companies, in places such as Singapore and Samoa to bypass investment and hiring restrictions.

Employees of these companies ended up unknowingly working on projects ultimately controlled by the Chinese government.

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