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Taiwan Investigates 16 Chinese Firms for Poaching Semiconductor and High-Tech Talent

Taiwan authorities launched an investigation into 16 Chinese companies accused of illegally recruiting semiconductor engineers and other high-tech workers, amid intensifying concerns about technology leakage to China. From July 15 to August 6, over 300 agents conducted raids at 70 locations and questioned 120 individuals linked to Chinese firms suspected of operating unlicensed offices and covert hiring practices in Taiwan.

The targeted companies include major players in chip design, semiconductor manufacturing, and electronics. Notable firms under scrutiny include Goertek, Victory Giant Technology (a key Nvidia supplier and PCB maker), NOVOSENSE Microelectronics, and VNET Group, a Nasdaq-listed Chinese data centre operator. None of the companies immediately responded to requests for comment.

Taiwanese law restricts Chinese investments in critical parts of the semiconductor supply chain, such as chip design, and mandates government reviews for areas like chip packaging. Chinese firms have reportedly circumvented these restrictions by operating shell companies registered abroad, using hiring agencies, and failing to obtain official approvals.

The Taiwan Investigation Bureau emphasized the strategic importance of safeguarding the island’s semiconductor and integrated circuit design industries, which are vital to its economic strength and global technological leadership. A special task force has handled over 100 similar cases since late 2020.

Taiwan’s government remains firm in protecting its high-tech workforce and industry from illicit talent poaching as tensions over technology and sovereignty with China continue to rise.

Taiwan Investigates SMIC for Alleged Illegal Recruitment of Tech Workers

Taiwanese authorities are investigating whether China’s top semiconductor manufacturer, SMIC (Semiconductor Manufacturing International Corporation), has been involved in illegally luring Taiwanese tech workers. According to Taiwan’s Justice Ministry’s investigation bureau, SMIC is suspected of using a shell company posing as a Samoan firm to recruit engineers on the island, specifically targeting the semiconductor talent in Hsinchu County, home to Taiwan’s semiconductor industry hub and TSMC (Taiwan Semiconductor Manufacturing Company).

The investigation is part of Taiwan’s broader effort to combat illegal activities aimed at stealing know-how and attracting talent from its advanced technology sector. Taiwan has long been a global leader in semiconductor manufacturing, making its high-tech workforce a prime target for Chinese firms, especially amid growing geopolitical tensions and U.S. export restrictions on China’s semiconductor industry.

Taiwan’s investigation has been extensive, with 180 agents conducting raids at 11 companies suspected of engaging in talent poaching. The authorities have already questioned 90 people and seized evidence from 34 premises. Since 2020, more than 100 such cases have been investigated.

SMIC, which has been increasing its efforts to expand its production capacity and counter U.S. sanctions, has not yet responded to requests for comment regarding the allegations.