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 the island nation on Monday launched raids on Chinese companies. According to the Investigation Bureau (IB), at least 10 Chinese firms were raided over alleged "illegal poaching" of semiconductor chip engineers. The series of the crackdown was carried out in several cities on the island, including the industrial hub of Taipei, Hsinchu, and Taoyuan, the Singapore Post reported.

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

Taiwan labour laws

It is pertinent to note that Taiwan Labour Law passed in 2021 forbids Chinese companies from recruiting Taiwanese nationals. The law proposed by the Taiwan Labour Agency banned all China-based staffing companies from offering jobs to Taiwanese. The extreme measure was taken to prevent tech experts from moving to China or join Chinese firms. "Due to geopolitical tension between the 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," the Taiwanese Labor Ministry said in a notice, as quoted by Nikkei Asia. The statement stressed harsher punishment for firms recruiting semiconductor or integrated circuit (chip) specialists.

According to the Singapore Post, China has beefed its efforts to draw maximum executives from Taiwan as the country is facing sluggish economic growth. Beijing-based companies offered at least 2-2.5 times more salary compared to what the employees are paid in Taiwan. "Hsinchu in Taiwan has become a center of intellectual property theft," the 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 the Taipei-led probe was a "concerning escalation" intended to thwart the development of the China-based semiconductor industry.

(Image: AP)