On Wednesday, March 9, Taiwan reportedly initiated a giant multiple-city raid of as much as eight Chinese chip and component suppliers. The raid turned out to be a result of allegations regarding the illegal poaching of workers from Taiwan.
The Investigation Bureau of the Ministry of Justice accelerated investigators which were more than hundred in number. They sent these investigators to search 14 locations in Taiwan- Hsinchu, country’s biggest hub of its semiconductor industry, along with Taipei, Taichung and Taoyuan. Apparently, more than 60 people connected to the Chinese companies were called for questioning by the bureau.
An official from the bureau, who is familiar with the ongoing situation gave a statement to concerned reporters. They stated how the bureau had spent over six months in the investigation of these Chinese companies’ financial and talent flows. The current issue has come forward as the “largest scale of probe” in the past few years. The bureau is looking forward to this massive move resulting in the increase in awareness of the citizens about China’s tries to weaken the core economic competitiveness of Taiwan.
There are a number of Chinese Companies that are scheduled to be searched on Thursday, March 10. Amedac, or the Hefei-based Advanced Manufacturing EDA Co., is one which is a rising startup involved in chip design tools. Moreover, the US- based Synopsys also known to own a stake in Amedac. Among other offices being searched are the China-listed chip developers like Verisilicon and Vimicron.
“These are unlawful and villainous efforts and need to be treated seriously. … This is not only a matter of economic and commercial competition but could be national security threats,” the bureau said in the press statement.
The bureau specified in its statement that many of these Chinese companies are involved in evading regulations, and setting up of research and development centres in Taiwan. They are also allegedly involved in poaching experienced workers from Taiwan, which violates Taiwanese regulations with regards to cross-strait relations. The bureau pointed out how this could risk Taiwan’s global competitiveness and national security. These Chinese companies apparently posed themselves as local or non-Chinese foreign firms to carry out business operations without regulatory approval on the island.
The investigation somehow comes at a time when Taiwan struggles with the critical staffing shortage. This was ignited by the rush of the global chip industry to expand production. In order to protect the industry, the island is in the process of regulating laws to criminalise such engagement in “economic espionage.”
