Taiwanese authorities have searched dozens of locations and questioned more than 100 people as part of an investigation into 17 Chinese companies suspected of illegally recruiting semiconductor and other high-technology talent on the island, according to Reuters. The operation forms part of Taiwan’s broader efforts to counter what it views as attempts by Chinese firms to undermine its technological competitiveness by targeting skilled workers.
According to Reuters, Taiwan’s Ministry of Justice Investigation Bureau said that between 13 July and 4 August, 330 investigators carried out coordinated raids at 64 locations while questioning 114 people. The investigation focuses on Chinese companies suspected of unlawfully recruiting Taiwanese technology professionals and operating offices in Taiwan without the required authorisation.
Taiwan, home to one of the world’s most advanced semiconductor industries, has increasingly intensified scrutiny of Chinese efforts to attract its highly skilled workforce. Reuters reported that the island’s authorities believe Chinese companies have been using covert methods to recruit engineers and specialists from Taiwan’s strategically important technology sector.
In a statement cited by Reuters, the Investigation Bureau said countries around the world are investing heavily in artificial intelligence research and development and that Taiwan possesses significant competitive advantages built upon its long-established technological expertise. However, the bureau warned that these strengths have recently come under pressure from what it described as targeted recruitment campaigns by Chinese companies seeking to attract Taiwan’s core high-tech talent.
According to the bureau, the loss of experienced professionals could weaken Taiwan’s competitive position in industries that are regarded as strategically important to both its economy and global technology supply chains.
Reuters reported that the companies named in the investigation include several publicly listed Chinese technology firms. Among them are semiconductor equipment manufacturer ACM Research Shanghai, integrated circuit designer Goke Microelectronics, consumer battery supplier Zhuhai CosMX Battery and chip designer Actions Technology. None of the companies immediately responded to Reuters’ requests for comment.
The Investigation Bureau alleged that Chinese companies frequently conceal their identities by presenting themselves as Taiwanese or foreign businesses while establishing offices in Taiwan without official approval. Investigators also accused the companies of sending personnel to Taiwan to recruit technology professionals in violation of local laws governing employment and investment.
The latest enforcement action follows similar operations conducted earlier this year. Reuters noted that Taiwanese authorities announced comparable raids in March as part of an ongoing campaign to investigate suspected illegal recruitment activities linked to Chinese technology firms.
The issue unfolds against the backdrop of longstanding political tensions between Taiwan and China. Beijing regards Taiwan as part of its territory and has never renounced the use of force to bring the island under its control. Taiwan rejects China’s sovereignty claims and maintains that only the people of Taiwan have the right to determine the island’s future.
Taiwan’s legal framework imposes strict controls on Chinese investment in strategically sensitive sectors of the semiconductor industry. According to Reuters, Chinese investment is prohibited in certain segments of the semiconductor supply chain, including chip design, while investments in other areas such as semiconductor packaging are subject to government review. These restrictions make it difficult for Chinese semiconductor companies to establish or operate businesses legally on the island.
The investigation highlights Taiwan’s determination to protect its technological expertise at a time when global competition for semiconductor talent continues to intensify. As countries expand investment in advanced technologies such as artificial intelligence and next-generation chip manufacturing, Taiwanese authorities have increasingly prioritised measures aimed at safeguarding the skilled workforce regarded as central to the island’s position as a leading global semiconductor hub.
