Taiwan raids Chinese companies for 'illegally poaching' chip engineers, tech talents

In a major ramp-up in efforts to prevent poaching of tech talent from Taiwan, authorities of island nation on Monday launched raids on Chinese companies. According to Investigation Bureau (IB), at least 10 Chinese firms were raided over alleged "illegal poaching" of semiconductor chip engineers. series of crackdown was carried out in several cities on island, including industrial hub of Taipei, Hsinchu, and Taoyuan, Singapore Post reported.

Over 70 employees of companies and ir executives were questioned on Sunday as joint crackdowns continued amid worsening relations between Beijing and Taipei. As per reports, this is second such raid in less than three months' time. In March, Taiwan Semiconductor Manufacturing Company Limited (TSMC) investigated at least 8 Chinese companies. Furr, IB also barged local unit or Gigevice Semiconductor (HK) after complaints of "unlawful" recruitments in Chinese-backed firms, including XEPIC Corp.

Taiwan labour laws

It is pertinent to note that Taiwan Labour Law passed in 2021 forbids Chinese companies from recruiting Taiwanese nationals. law proposed by Taiwan Labour Agency banned all China-based staffing companies from offering jobs to Taiwanese. extreme measure was taken to prevent tech experts from moving to China or join Chinese firms. "Due to geopolitical tension between US and China, China's semiconductor development has suffered some setbacks, and as a result, China has become more aggressive in poaching and targeting top Taiwanese chip talent to help build a self-sufficient supply chain," Taiwanese Labor Ministry said in a notice, as quoted by Nikkei Asia. statement stressed harsher punishment for firms recruiting semiconductor or integrated circuit (chip) specialists.

According to Singapore Post, China has beefed its efforts to draw maximum executives from Taiwan as country is facing sluggish economic growth. Beijing-based companies offered at least 2-2.5 times more salary compared to what employees are paid in Taiwan. "Hsinchu in Taiwan has become a center of intellectual property ft," report claimed.

Chinese companies deny alleged violation of Taiwan Labour law

Chinese companies based in Taiwan have refuted alleged violations of Taipei's labour laws. Chinese experts, cited by Global Times, claimed that Taipei-led probe was a "concerning escalation" intended to thwart development of China-based semiconductor industry.

(Image: AP)