TAIPEI (Taiwan News) — Hi Sharp Electronics, a publicly-listed surveillance camera manufacturer, was charged with importing components from China for local assembly, receiving “Made in Taiwan” qualifications for government procurement projects.
Falsifying country of origin and potentially compromising national security led the Shilin District Prosecutors Office to mobilize 30 investigators to search Hi Sharp's factory and residences of corporate leaders on Wednesday, per a Ministry of Justice Investigation Bureau press release.
More than 2,000 surveillance cameras with false origin labels were seized. Hi Sharp Chair Jerry Jiang (江添貴) was brought in for questioning, and eventually released on NT$1 million (US$30,265) bail.
The MJIB said hackers and state-sponsored cyber attacks use devices such as surveillance cameras as a springboard into government agencies, key infrastructure, and private enterprises to steal confidential documents and business secrets. An MJIB investigation identified Hi Sharp products as a security risk, even finding the company's products connected to a cloud server in China.
Hi Sharp denied all charges, alleging that all relevant regulations had been met and that the company was fully cooperating with the investigation. It added that the ongoing investigation would not impact the company's financial operations.
The MJIB found that the company and subsidiaries had imported vital surveillance camera components such as motherboards, casings, and cables from China. MJIB alleged that only assembly took place in Taiwan, with the falsification of country of origin documents allowing it to win government procurement projects between 2020 and 2024.
MJIB found the company purchased more than NT$3.3 billion worth of components from China between 2019 and 2024. It alleged that such components could endanger national information and communications security.
Prosecutors said government procurement contracts expressly prohibit using China-made hardware, software, and services. The MJIB called upon domestic manufacturers not to import Chinese IT products or components for assembly or resale under their own brand as short-term profits will not outweigh criminal penalties.
