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Taiwan investigates Chinese firms over alleged illegal tech talent hiring

In a move reflecting rising concerns over technology security, authorities in Taiwan have launched a large-scale investigation into alleged illegal recruitment activities by Chinese companies targeting local tech talent.

Taiwan said 11 Chinese firms are under investigation for reportedly poaching semiconductor and high-tech professionals without approval. The action comes as tensions with Beijing continue to influence policies around technology and talent movement.

More than 185 agents conducted searches across 49 locations and questioned 90 individuals this month as part of a coordinated crackdown led by the Investigation Bureau. The probe focuses on firms suspected of illegally hiring Taiwanese engineers while operating in the region.

Officials stated that some Chinese companies attempted to hide their involvement by setting up operations under foreign-funded shell companies or by running unauthorised offices. These setups were allegedly used to recruit talent and carry out business activities in Taiwan without regulatory clearance.

Taiwan maintains strict rules on Chinese investments, especially in sensitive sectors like semiconductors. Direct investment is banned in areas such as chip design, while other segments like chip packaging require government approvals, making it difficult for Chinese firms to operate legally on the island.

The companies being investigated include Huaqin Technology, Anker Innovations, Circuit Fabology Microelectronics Equipment, Yangzhou Yangjie Electronic Technology Co Ltd, and SG Micro. None of the firms have responded to requests for comment so far.

The development also highlights a broader trend. China has been actively trying to secure chip expertise as it pushes for self-reliance in advanced semiconductor technologies amid an ongoing tech rivalry with the U.S.

Authorities noted that a special task force formed in late 2020 has already handled over 100 similar cases involving suspected illegal recruitment and business activities linked to Chinese companies.

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