Taiwan is investigating 16 Chinese companies for allegedly recruiting local semiconductor and tech workers without authorization.

Between July 15, 2025 and August 6, 2025, over 300 agents raided 70 locations and questioned 120 people linked to suspected illegal hiring and unlicensed operations.

Companies named in the probe include Goertek, Victory Giant Technology, Novosense Microelectronics, and VNET Group.

Taiwanese law limits Chinese investment in parts of the semiconductor industry and requires reviews for other sectors, making legal operations difficult.

The investigation bureau said Chinese companies have used covert methods such as shell companies and local agencies to hire Taiwanese talent.

Officials said these practices threaten Taiwan’s position in the global high-tech industry and that more than 100 such cases have been investigated since late 2020.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Taiwan’s semiconductor talent drain has become a multi-year crisis with documented industry losses

This latest investigation represents the escalation of a problem that Taiwan’s authorities have been combating for years, with over 100 similar cases handled since late 20201.

The economic damage is already visible, as Taiwan’s memory chip and LCD industries have faced increased competition from Chinese firms specifically due to talent loss2. Major Taiwanese companies like GlobalWafers identified talent poaching as a significant concern as early as 20183.

The scale of individual cases has grown, with one Chinese company, ARK Semi, reportedly poaching 50 R&D engineers from Taiwan since 20202.

The financial incentives driving this exodus are notable, with Taiwanese professionals reportedly earning double their Taiwan salaries when moving to China4.

2️⃣ Chinese firms have developed sophisticated covert recruitment methods to bypass Taiwan’s regulations

The investigation reveals that Chinese companies have moved beyond simple job offers, using shell companies registered in Hong Kong, dispatching staff through local hiring agencies, and operating through foreign entities to conceal their identities1.

One advanced approach is the “remote-poaching model,” where Taiwanese engineers work on projects for Chinese firms without physically relocating to China5.