TAIPEI (Taiwan News) — German intelligence officials are investigating reports that Chinese tech company Huawei has been trying to poach employees from semiconductor manufacturer Zeiss SMT.
Huawei representatives contacted Zeiss SMT staff via email, phone, and LinkedIn, offering employees up to triple pay to lure them to the Chinese firm, per the WSJ. Due to state funding, Chinese companies can pay salaries far above Western companies, the report noted.
Taiwan and the West have sought to prevent China from gaining sensitive technologies. However, officials worry that by luring top engineers through talent-poaching, China has an indirect way to access intelligence in advanced chips and AI, the report said.
China has targeted the world’s three technology hubs: Taiwan, Silicon Valley, and Europe. Investigators said firms might conceal their Chinese origins by pairing up with Taiwanese to start ventures that recruit local employees.
Local authorities said they are considering ways to mitigate talent poaching while not over-interfering in businesses’ recruitment decisions. While the US and Europe are relatively open for recruitment by most Chinese companies, Taiwan maintains strict regulations against China.
In 2015, Taiwan reported a rise in talent poaching and trade theft, leading to new regulations in 2022 that heightened penalties for firms and individuals who leak technology. Those found guilty can face a 12-year maximum prison sentence or a fine of up to NT$100 million (US$3 million).
The Ministry of Justice investigated 90 corporate espionage cases in the semiconductor and electronics machinery industries between 2020 and July. In the latest crackdown in September, investigators raided 30 locations, naming eight Chinese companies that used front companies and false information to spy or poach talent from Taiwan's high-tech industries.
In addition, China has focused on ASML Holding, the world's leading semiconductor supplier based in the Netherlands. The government has banned the company’s EUV scanners from being shipped to China, and since 2021, Huawei has attempted to recruit former employees of ASML and other Western companies, according to LinkedIn data and Chinese networking website Maimai.
ASML said it had “no indication of unusual recruitment activity toward its employees,” and many engineers are reluctant to accept Chinese offers over reputational risks, the report stated. Nevertheless, China has shown that recruiting talent is a priority in AI development.
