Taiwan cracks down on tech businesses with illegal Chinese ownership — 166 investigations and at least 36 convictions since 2020

by

Taiwan cracks down on tech businesses with illegal Chinese ownership — 166 investigations and at least 36 convictions since 2020

China has been trying to build self-sufficiency when it comes to semiconductors and advanced chips — an endeavor that began in 2015 and was supercharged in recent years by the White House’s efforts to keep Western technologies away from Beijing through trade bans and export controls . Many Chinese companies are trying to stay competitive and build their own technologies by hiring experts and engineers from across the Taiwan Strait, especially those who have experience working in Taiwan’s vibrant semiconductor industry. They’re even trying to attract talent by offering lucrative salaries that are five to ten times higher than average.

However, Taipei considers this a threat to its national security , especially as its “silicon shield” strategy relies on its technological advantage over China to ensure that its allies help defend it in case of an invasion. Taiwan accounts for more than 60% of global semiconductor production and produces about 90% of the most advanced processors — so any disruption would plunge the modern world into chaos. And by building a semiconductor industry that can rival Taiwan's, China hopes to erode Taiwan’s advantage while also ensuring that it can have all the chips it needs without relying on external sources.

The Ministry of Justice Investigation Bureau (MJIB), the Taiwanese equivalent to the FBI, has investigated 166 cases involving illegal Chinese ownership since 2020. Court records reveal that at least 36 of these have resulted in convictions, in which punishment can include prison time of up to three years and fines ranging from NTD 120,000 (USD $3,800) to nearly NTD 25,000,000 (USD $800,000).

Of the 36 companies that been found guilty of violating the Cross-Strait Act, 33 of them were focused on semiconductor research, development, and design. Aside from this, the agency also investigated 67 cases of Chinese companies allegedly stealing trade secrets from Taiwanese companies.

Taiwan weighs criminal ban on AI chip exports to all of China

Key considerations

  • Investor positioning can change fast
  • Volatility remains possible near catalysts
  • Macro rates and liquidity can dominate flows

Reference reading

More on this site

Informational only. No financial advice. Do your own research.

Related posts:

  1. The state of China’s decade-long semiconductor push: still a decade behind, despite hundreds of billions spent and significant progress — examining the original
  2. The state of China’s decade-long semiconductor push: still a decade behind, despite hundreds of billions spent and significant progress — examining the original
  3. The state of China’s decade-long semiconductor push: still a decade behind, despite hundreds of billions spent and significant progress — examining the original
  4. The state of China’s decade-long semiconductor push: still a decade behind, despite hundreds of billions spent and significant progress — examining the original

Leave a Comment