Taiwan Raids China-Linked Companies in Investigation Over Chip Technology Leaks

TAIPEI, Aug 7 — Taiwanese authorities have raided 16 companies with Chinese funding, suspected of illegally recruiting local tech talent to steal sensitive information from Taiwan’s semiconductor industry.

Taiwan plays a critical role in the global semiconductor supply chain, producing more than half of the world’s chips, including the vast majority of advanced ones.

Meanwhile, China is accelerating efforts to develop its own cutting-edge chips—vital for powering artificial intelligence technologies—as it faces tightening export restrictions from the United States.

Between July 15 and August 6, over 100 investigators searched 70 locations across the island and questioned 120 individuals, according to the Ministry of Justice’s Investigation Bureau.

The investigation is ongoing and no formal charges have been filed yet, a bureau investigator surnamed Gu told AFP, noting that Taiwan typically sees around 25 to 30 similar cases annually.

Intelligence gathered by the bureau revealed that “several illegally funded mainland enterprises have been stealing Taiwan’s high-tech secrets by unlawfully luring talent,” said the Hsinchu District Prosecutors Office, which helped lead the raids.

These companies reportedly employed “diverse and highly damaging infiltration tactics,” it added.

Among the firms searched were Goertek, a key Apple supplier, and VNET Group, which is listed on the U.S. stock exchange.

Taiwan has consistently accused China of conducting espionage operations, with Beijing claiming sovereignty over the island and threatening to take it by force if necessary.

Earlier this year, Taiwan placed Chinese tech giants Huawei and chipmaker SMIC on an export blacklist, further restricting China’s access to advanced chip technology.

Taiwanese firms seeking to export high-tech products to any entities on the blacklist must now secure government approval.

In March, the Investigation Bureau confirmed it was probing SMIC and other Chinese firms for allegedly poaching Taiwanese tech professionals. — AFP