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Why Taiwan is cracking down on Chinese companies

by Gias
May 26, 2022
2 min read
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Chip engineers Why Taiwan is cracking down on Chinese companies

Taiwan authorities raided ten Chinese language firms suspected of illegally poaching chip engineers and different tech expertise this week, the island’s Investigation Bureau mentioned on Thursday, the newest crackdown on Chinese language corporations to guard its chip supremacy.

House to chipmaker large TSMC and accounting for almost all of the world’s most superior semiconductor manufacturing capability, Taiwan has ramped up a marketing campaign to counter unlawful poaching by Chinese language firms in what the island sees as a menace to its chip experience.

The bureau mentioned it raided 10 Chinese language firms or their R&D facilities which function in Taiwan with out approval earlier this week. It mentioned almost 70 folks have been summoned for questioning in a joint crackdown throughout a number of cities together with the capital Taipei and the island’s semiconductor hub, Hsinchu.

“The unlawful poaching of Taiwan’s high-tech expertise by Chinese language firms has badly impacted our worldwide competitiveness and endangered our nationwide safety,” the bureau mentioned in a press release.

It mentioned know-how is important to Taiwan’s safety and urged folks to “keep excessive on alert” for such Chinese language actions.

The bureau didn’t title the businesses at the moment being investigated, including they included built-in circuit design corporations and electronics components makers.

China‘s Taiwan Affairs Workplace has not responded to Reuters’ requests for touch upon the difficulty.

The Investigation Bureau has launched investigations into round 100 Chinese language firms suspected of illegally poaching know-how skills, a senior bureau official instructed Reuters final month.

China’s scramble for chip engineering expertise has intensified amid Beijing’s aim of reaching self-reliance in superior chips, particularly after a commerce warfare with the previous Trump administration in the USA.

Taiwanese regulation prohibits Chinese language funding in some components of the semiconductor provide chain, together with chip design, and requires critiques for different areas resembling chip packaging, making it very troublesome for Chinese language chip firms to function on the island legally.

In March, the bureau raided eight Chinese language firms geared toward countering what it mentioned was “the Chinese language Communist Occasion’s unlawful actions of talent-poaching and secret-stealing”.

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