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Taiwan probes 11 China firms over chip talent poaching
Taiwan is investigating 11 Chinese firms over alleged illegal recruiting of semiconductor and other tech workers, as Beijing steps up efforts to build AI and chip capabilities amid deeper rivalry with the US.
Authorities said the companies hid their mainland ties, used shell entities, and operated in Taiwan without approval. It added that agents raided 49 sites and questioned 90 people in a concerted effort since last August.
The latest cases are part of Taiwan’s crackdown, which has handled 100 cases since 2020, after the island banned Chinese firms from recruiting semiconductor staff in 2021 and tightened penalties in 2022. Meanwhile, 77.7% of Taiwanese chip companies reported hiring difficulties.
🔗 Source: South China Morning Post
🧠 Food for thought
Implications, context, and why it matters.
Taiwan’s crackdown is backed by tougher laws and enforcement
- Taiwan’s cabinet has proposed changes to the National Security Act. Offences like “extraterritorial misappropriation of trade secrets” and economic espionage could bring prison terms of up to 10 and 12 years 1.
- Investigators say some mainland China-linked firms try to dodge scrutiny. They allegedly use hidden “private locations” or place staff under other companies to mask their work 2.
- Prosecutors have filed charges in one case with 14 people. Apple supplier Luxshare Precision Industry was accused of taking commercial secrets from Taiwanese rival Catcher Technology and luring away its workers 3.
Taiwanese chip talent is being courted by both mainland Chinese and US firms
- Nvidia is paying senior engineers more than NT$5.5 million (US$172,000) a year, or roughly under $185,000. The company is expanding hiring in Taiwan and reports say it may open a second R&D (research and development) center on the island 4.
- Mainland-linked recruiting tied to Huawei, a major Chinese telecommunications and electronics company, has also drawn attention. Digitimes reports Huawei is allegedly offering triple salaries to attract Taiwanese semiconductor engineers, especially from TSMC (Taiwan Semiconductor Manufacturing Company) 5.
- Semi Taiwan says 77.7% of Taiwanese chip companies struggle to hire. Demand also rises from new semiconductor fabs (fabrication plants) in the US, Japan, and Europe that will need skilled Taiwanese staff 1.
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