Taiwanese authorities have accused Luxshare Precision Industry, a Chinese Apple supplier, of illegally operating in Taiwan and attempting to poach local tech talent.
The Ministry of Justice Investigation Bureau (MJIB) revealed that Luxshare is one of eight Chinese firms implicated in illegally recruiting high-tech professionals from Taiwan.
Additionally, the MJIB identified Zhejiang Dahua Technology as having illegally set up operations in Taiwan.
The company, which is a Chinese video surveillance equipment maker, was blacklisted by the US in 2019 for its involvement in Beijing’s treatment of Muslim minorities in Xinjiang.
The bureau said Zhejiang Dahua established “two private locations” on the island, attempting to disguise its employees as working for another company to evade detection.
Neither Luxshare Precision Industry nor Zhejiang Dahua Technology responded to requests for comment.
Taiwan, a critical player in the global semiconductor industry and home to chipmaker giant TSMC views China’s actions as a significant threat to its technological edge.
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The MJIB said it is committed to cracking down on illegal business practices and talent poaching by Chinese firms.
The bureau said: “The facilitators of relevant mainland China companies in Taiwan should not be under any illusions and challenge the determination to enforce the law.”
The announcement follows a recent crackdown on suspected illegal operations by Chinese tech companies in Taiwan.
In 2022, Taiwanese prosecutors accused Luxshare of stealing trade secrets from Catcher Technology, a Taiwanese competitor, and poaching its workforce to secure orders from Apple.
Fourteen people were charged in connection with that case.
