- As the investigation unfolds, the global semiconductor industry is urgently seeking to expand production, leading to a severe shortage of employees in Taiwan, China. In order to protect its crucial chip industry, Taiwan is tightening relevant laws, criminalising activities such as engaging in “economic espionage” abroad without approval or using key technologies and trade secrets.
- According to the press release, among the eight mainland companies involved are Apple’s Chinese supplier, Luxshare Precision Industry and the U.S.-sanctioned video surveillance equipment manufacturer, Zhejiang Dahua Technology.
- The investigation bureau stated that Luxshare Precision stole the business secrets of its Taiwanese competitor, Catcher Technology, and poached its employees in order to win orders from Apple, and has filed lawsuits against 14 individuals.
Taiwan’s Investigation Bureau has launched an investigation into Chinese companies suspected of illegally poaching technical talent in recent months. Prior to this, the Taiwan Investigation Bureau had conducted surprise inspections of around 100 such Chinese companies, aiming to combat what it referred to as “illegal talent poaching and theft of secrets by the Chinese Communist Party.”
The need of semiconductor
As the investigation unfolds, the global semiconductor industry is urgently seeking to expand production, leading to a severe shortage of employees in Taiwan, China. In order to protect its crucial chip industry, Taiwan is tightening relevant laws, criminalising activities such as engaging in economic espionage abroad without approval or using key technologies and trade secrets.
Meanwhile, given the ongoing tense geopolitical relations between China and the United States, mainland China has been intensifying efforts to establish a viable domestic semiconductor industry and reduce reliance on overseas suppliers. This goal has increased the demand for Taiwanese engineers and their key technologies, accelerating the technological advancement process in mainland China.
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Accusation
According to the press release, among the eight mainland companies involved are Apple’s Chinese supplier, Luxshare Precision Industry and the U.S.-sanctioned video surveillance equipment manufacturer, Zhejiang Dahua Technology.
The investigation bureau stated that Zhejiang Dahua, a mainland surveillance equipment manufacturer sanctioned by the U.S. government and listed on the military-industrial blacklist for allegedly assisting in the violation of the human rights of ethnic minorities in Xinjiang, is suspected of operating two unregistered and unmarked offices in Taiwan. The bureau also alleged that Zhejiang Dahua covertly insured its employees through another labor dispatch company to evade scrutiny, and prosecuting authorities will investigate whether the company has stolen and leaked trade secrets from Taiwanese industries.
Zhejiang Dahua did not immediately respond to requests for comment.
The investigation bureau stated that Luxshare Precision stole the business secrets of its Taiwanese competitor, Catcher Technology, and poached its employees in order to win orders from Apple, and has filed lawsuits against 14 individuals. In addition, Luxshare Precision has been named by the U.S. digital media company The Information and Republican Congressman Ken Buck from Colorado as one of the 7 Chinese companies involved in forced labor in Xinjiang. Luxshare Precision has not provided any comments on the matter.
