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.