Taiwan probes 11 Chinese firms for illegal poaching of tech talent

By Wen-Yee Lee

TAIPEI, March 30 (Reuters) – Taiwan said on Monday 11 Chinese firms are being investigated for alleged illegal poaching of semiconductor and other high‑tech talent, stepping up 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 suspected of recruiting Taiwanese engineers in Taiwan without approval, Taiwan’s Investigation Bureau said.

It said 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 authorisation, 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, and 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 U.S.

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.

(Reporting by Wen-Yee Lee; Editing by Arun Koyyur)