Taiwan Investigates Chinese Firms Over Illegal Tech Recruitment

Taiwan has intensified its efforts to protect its high-tech industries after authorities launched a major investigation into Chinese companies suspected of illegally recruiting skilled workers. The latest enforcement action reflects growing concerns over attempts to attract semiconductor and other technology talent from the island, which remains a global leader in chip manufacturing.

Taiwan’s government said on Wednesday that investigators searched dozens of locations and interviewed more than 100 people as part of an investigation into 17 Chinese companies suspected of unlawfully recruiting semiconductor and other high-tech professionals.

Large-Scale Investigation Launched

Taiwan’s Ministry of Justice Investigation Bureau said that between July 13 and August 4, authorities conducted coordinated raids involving 330 investigators. During the operation, officials searched 64 locations and questioned 114 people linked to Chinese companies suspected of illegally recruiting technology workers and operating unlicensed offices in Taiwan.

The bureau said the investigation formed part of ongoing efforts to protect Taiwan’s strategic industries and enforce regulations governing foreign business activity on the island.

Concerns Over High-Tech Talent Recruitment

According to the bureau, countries worldwide continue to invest heavily in artificial intelligence research and development. It said Taiwan has built significant advantages through its long-standing expertise in advanced technology industries.

However, officials warned that Chinese companies have increasingly targeted Taiwan’s core high-tech workforce. The bureau said these recruitment efforts could weaken the island’s competitive position by drawing away experienced professionals from key sectors.

Investigators alleged that some Chinese companies concealed their identities by presenting themselves as Taiwanese or foreign businesses. They also accused the firms of establishing offices without the required approval and sending personnel to Taiwan to recruit local talent unlawfully.

Companies Named in the Investigation

The companies identified by the bureau included several publicly listed Chinese technology firms. They included semiconductor equipment manufacturer ACM Research Shanghai, integrated circuit designer Goke Microelectronics, consumer battery supplier Zhuhai CosMX Battery and chip designer Actions Technology.

None of the companies immediately responded to requests for comment.

Taiwan has carried out similar investigations in recent years, including another series of raids announced in March, as authorities continue to monitor suspected illegal recruitment activities.

Taiwan’s Semiconductor Rules

Taiwan maintains strict regulations on Chinese investment in its semiconductor industry. The law prohibits Chinese investment in certain parts of the semiconductor supply chain, including chip design, while other activities, such as chip packaging, require official review before approval.

These restrictions make it difficult for Chinese semiconductor companies to establish legal operations in Taiwan.

The investigation comes against the backdrop of continued tensions between Taipei and Beijing. China regards Taiwan as part of its territory and has never ruled out the use of force to bring the island under its control. Taiwan rejects China’s sovereignty claims and maintains that only its people have the right to determine the island’s future.

With inputs from Reuters