On Friday, July 15, Taiwanese prosecutors alleged that an Apple Inc supplier from China stole commercial secrets from a supplier in Taiwan. Additionally, it accused the Chinese supplier of poaching its employees to gain orders from the tech giant, having charged fourteen people possibly involved.
For a while now, Taiwan has been upping its game in what it considers underhand and illegal pursuits. Mainly, these are the schemes Chinese firms adopt to steal know-how, and poach valuable talent from Taiwanese organisations. In turn, the government of Taiwan looks at this as a significant threat to the tech expertise of the country.
According to the Prosecutors at New Taipei, they came across targets from the LuxShare Precision Industry Co. in China following an investigation that lasted for eighteen months. Essentially, the target was at its rival at Taiwan, Catcher Technology Co. Ltd for the its quick entry into the production chain of Apple to gain orders.
These prosecutors gave in a statement following the charging of the 14 people. They noted how China’s Luxshare reportedly enticed the research and development team in China of Catcher through promises of better salaries. By means of this, they stole commercial secrets from the Taiwanese companies, which resulted in them facing significant losses.
“in order to quickly enter the Apple production chain to win orders”
As specified by the statement, the Chinese supplier was carrying this out to gain the ability to build factories fast, and facilitate mass productions of Apple products such as iPads and iPhones. Neither the US tech giant, nor China’s Luxshare acknowledged any requests made for a comment on the situation.
As of now, it stated how New Taipei prosecutors carried out the charging of 14 people linked to the case for violation of trust, and carrying trade secrets for its use its outside. Further, they assured how the department would do all they can to ‘investigate such cases’ for the maintenance of functional growth of Taiwan’s enterprises. Along with it, to make sure keep the competition between the ‘national industries.’
The maker of iPad and iPhone cases, Catcher gave a statement regarding this development. It said how it maintains the implementation and optimisation of commercial secrets, along with intellectual property rights. Further, it stated it would investigate any given infringement on its ‘rights and interests,’ adding that it is cooperating with this probe.
Two months ago, Taiwanese authorities went on to raid 10 firms, or their R&D centres which had their operation in Taiwan. Reportedly, this was without the approval suspected of the illegal poaching of chip engineers, and other talents in the industry.