TAIPEI (Taiwan News) — Investigators said Friday that China’s Semiconductor Manufacturing International Corp. had illegally poached staff to steal Taiwan’s high-tech secrets.
SMIC allegedly set up a dummy company in Taipei registered in Samoa. It then tried to hire local talent, according to a Public Affairs Office report.
Starting in December, the Ministry of Justice Investigation Bureau searched 34 locations and interviewed 90 people as part of its probe into 11 Chinese firms. It uncovered illegal recruitment activities by China's SMIC, Shenzhen Torey Microelectronics Technology, and Clounix.
In its statement, the bureau said Taiwan’s “high-tech industry is the backbone of our economy, with semiconductor companies and related industries serving as the country’s ‘National Protective Shield.’ Consequently, Taiwan’s high-tech talent has become a key target for recruitment by Chinese enterprises.”
Shanghai-based SMIC was also accused of "illegal acts" in Hsinchu, which is known as “Taiwan's Silicon Valley." The bureau added that the company tried to hire talents while representing itself as “Taiwanese, overseas Chinese, or foreign-invested companies, while in reality being backed by Chinese capital.”
In addition, SMIC was accused of “establishing unauthorized business locations in Taiwan without government approval, and using employment agencies to falsely assign employees to Taiwanese firms.”
Taiwan produces more than half of the world's semiconductors and most of the high-end chips. Meanwhile, China has been stymied in its pursuit of the most advanced tech by worldwide trade bans and a domestic industry that is playing catch-up.