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Taiwan Accuses Chinese Apple Supplier of Illegal Operations, Talent Poaching

POSTED ON May 31, 2024 •   Technology      BY Samuel O . Adeniyi •   VIEWS 120
Apple | Photo Credit: Firstpost

Taiwanese law enforcement has accused a Chinese Apple supplier of illegally operating in Taiwan and attempting to poach tech talent, also implicating a U.S.-sanctioned Chinese firm in illegal activities on the island.

Taiwan, which China claims as its own territory, has been increasing efforts to curb what it sees as illicit actions by Chinese firms aimed at stealing technological know-how and luring away skilled professionals.

Late Thursday, Taiwan's Ministry of Justice Investigation Bureau identified Luxshare Precision Industry as one of eight Chinese companies "that came to Taiwan to illegally engage in the poaching of our high-tech talents." Specific details were not provided.

Luxshare did not immediately respond to a request for comment.

The investigation bureau also named Zhejiang Dahua Technology, a video surveillance equipment maker, which the United States added to a blacklist in 2019 due to Beijing's treatment of Muslim minorities in Xinjiang.

The bureau alleged that Zhejiang Dahua established "two private locations" in Taiwan and attempted to evade investigation by listing its employees under a different company, though further details were not disclosed.

Zhejiang Dahua did not immediately respond to a request for comment.

Taiwan, home to semiconductor giant TSMC and responsible for the majority of the world's most advanced semiconductor manufacturing capacity, views China's efforts as a significant threat to its chip expertise.

"The facilitators of relevant mainland China companies in Taiwan should not be under any illusions and challenge the determination to enforce the law," the bureau stated, emphasizing its commitment to "resolutely crack down on illegal business operations and the poaching of talent."

Thursday's announcement followed a sweep this month targeting suspected illegal operations by Chinese tech companies.

In 2022, Taiwanese prosecutors accused Luxshare of stealing commercial secrets from Taiwanese competitor Catcher Technology and poaching its workforce to secure orders from Apple, resulting in charges against 14 individuals.

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