• Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
Stock

Taiwan probes 11 Chinese firms, alleges SMIC poached engineers

by March 29, 2025
by March 29, 2025

Taiwan’s Ministry of Justice Investigation Bureau (MJIB) has accused China’s largest chipmaker, Semiconductor Manufacturing International Corporation (SMIC), of illegally hiring Taiwanese semiconductor professionals.

The allegations form part of a broader investigation into 11 Chinese enterprises suspected of poaching talent from Taiwan’s chip sector.

The probe highlights rising tensions in the global semiconductor industry, where competition for engineering expertise has intensified following US restrictions on China’s access to advanced chipmaking equipment.

Investigators claim that SMIC secretly operated a subsidiary in Taiwan using a Samoa-based shell company to mask its origins and avoid regulatory oversight.

The operation allegedly targeted highly skilled engineers in an attempt to bolster China’s domestic chipmaking ambitions.

SMIC linked to shell firm in Taiwan

The MJIB said that SMIC created a subsidiary in Taiwan “under the guise of foreign investment,” using a company registered in Samoa as a front.

The firm is accused of recruiting local chip engineers while bypassing the legal requirements for foreign direct investment.

Taiwanese authorities began their investigation in December 2024.

Since then, law enforcement officials have searched 34 locations linked to the 11 Chinese firms and questioned 90 individuals connected to the suspected recruitment network.

A special task force was first established by the MJIB in late 2020 to track allegations of unauthorised hiring practices by mainland Chinese companies.

Authorities claim that Chinese firms often operate covertly, sometimes posing as Taiwanese, overseas Chinese, or foreign-backed enterprises to avoid detection and bypass Taiwanese legal restrictions.

In some cases, employment agencies have been used to funnel job offers to Taiwanese engineers.

US chip restrictions heighten race for talent

The investigation into SMIC comes amid escalating efforts by China to close its technology gap in chip production.

China’s ambition to achieve self-sufficiency in semiconductors has gained urgency since the US placed SMIC on its export blacklist in 2020.

This action effectively cut the company off from advanced chipmaking tools provided by companies like ASML, a key Dutch supplier of extreme ultraviolet lithography machines.

In 2023, SMIC made headlines when it was identified as the manufacturer of the 7-nanometre chip used in Huawei’s Mate 60 Pro smartphone.

The product raised concerns among US officials who questioned how the company had developed such a chip despite facing export bans on critical equipment.

SMIC has not publicly commented on the latest allegations made by Taiwan’s MJIB.

China faces chip talent restrictions

Taiwan continues to dominate the global semiconductor manufacturing industry.

The island is home to Taiwan Semiconductor Manufacturing Company (TSMC), the world’s most advanced contract chipmaker.

TSMC produces chips for tech giants such as Apple and Nvidia, and its technological edge has made Taiwan a strategic focal point in the global supply chain.

The US has moved to reinforce this strategic partnership, encouraging TSMC to expand its manufacturing capacity on American soil.

Washington has also been active in shielding Taiwan’s chip sector from Chinese recruitment and acquisition attempts, in a bid to secure supply chains and reduce dependency on Chinese tech.

The MJIB’s latest crackdown demonstrates Taiwan’s determination to protect its semiconductor workforce from what it calls “illegal poaching”.

The scale of the investigation, which involved 34 searches and 90 interviews, signals that authorities are escalating their efforts to counter foreign recruitment activities deemed harmful to national security and industrial competitiveness.

The post Taiwan probes 11 Chinese firms, alleges SMIC poached engineers appeared first on Invezz

0 comment
0
FacebookTwitterPinterestEmail

previous post
Why did activist investor Elliott build a short position in Shell stock?
next post
Market overreacts to Lululemon’s Q4 earnings: what you need to know

Related Posts

Asian markets open: most futures lower; Sensex to...

June 6, 2025

Here’s why the Nifty 50 Index may surge...

June 6, 2025

Circle stock price prediction: is CRCL a good...

June 6, 2025

Trump-Musk fallout risks SpaceX deals, Tesla’s standing, and...

June 6, 2025

European markets open: Stoxx 600 flat ahead of...

June 6, 2025

Musk, Trump dial back feud as White House...

June 6, 2025

XRP slips 2.5% to $2.14 as Trump-Musk clash...

June 6, 2025

China’s May export growth seen slowing to 5.0%...

June 6, 2025

FTSE 100 Index shares of 2025: Rolls-Royce, Fresnillo,...

June 6, 2025

Citi downgrades CEG stock despite Constellation Energy’s big...

June 5, 2025

Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.

By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

Recent Posts

  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Want to Fix Medicaid? Look to Milton Friedman

    June 6, 2025
  • Relative Drug Pricing is Bad Medicine

    June 6, 2025
  • Asian markets open: most futures lower; Sensex to open flat as RBI policy decision looms

    June 6, 2025
  • Here’s why the Nifty 50 Index may surge after the RBI rate cut

    June 6, 2025

Editors’ Picks

  • 1

    Walmart earnings preview: What to expect before Thursday’s opening bell

    February 20, 2025
  • 2

    Meta executives eligible for 200% salary bonus under new pay structure

    February 21, 2025
  • 3

    New FBI leader Kash Patel tapped to run ATF as acting director

    February 23, 2025
  • 4

    Anthropic’s newly released Claude 3.7 Sonnet can ‘think’ as long as the user wants before giving an answer

    February 25, 2025
  • 5

    Elon Musk says federal employees must fill out productivity reports or resign

    February 23, 2025
  • 6

    Nvidia’s investment in SoundHound wasn’t all that significant after all

    March 1, 2025
  • 7

    Cramer reveals a sub-sector of technology that can withstand Trump tariffs

    March 1, 2025

Categories

  • Economy (1,373)
  • Editor's Pick (143)
  • Investing (165)
  • Stock (882)
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Portfolio Performance Today
  • Investing
  • Stock
  • Economy
  • Editor’s Pick
Copyright © 2025 Portfolioperformancetoday.com All Rights Reserved.

Read alsox

Why analysts are betting on Richemont and...

April 9, 2025

Rolls-Royce share price hits turbulence: can it...

March 31, 2025

SCHD ETF analysis: 2 catalysts to move...

May 19, 2025