Taiwanese authorities have launched an investigation into 17 Chinese companies suspected of illegally recruiting semiconductor and other high-tech professionals from the island.

The Ministry of Justice’s Investigation Bureau said authorities searched 64 locations and questioned 114 people between July 13 and August 4 during coordinated raids targeting firms accused of operating unlicensed offices and unlawfully recruiting Taiwanese technology workers.

Taiwan, a global leader in semiconductor manufacturing, has stepped up efforts to curb what it describes as attempts by Chinese companies to lure away its skilled workforce.

The bureau said Taiwan’s leadership in semiconductor manufacturing and artificial intelligence is the result of decades of technological advancement. It warned that the country’s competitive edge is increasingly under threat from Chinese firms seeking to recruit its highly skilled talent.

Among the companies named in the investigation is Chinese semiconductor equipment manufacturer ACM Research Shanghai, one of several publicly listed technology firms under scrutiny.

The companies had not responded to the allegations.

Investigators said some Chinese firms allegedly disguised themselves as Taiwanese or foreign companies, established offices without official approval and sent personnel to Taiwan to recruit local technology workers illegally.

Taiwan has carried out similar investigations in recent years, including a series of coordinated raids in March.

China claims Taiwan as part of its territory and has never ruled out the use of force to bring the island under its control. Taiwan rejects Beijing’s sovereignty claims, insisting that only its people can determine the island’s future.

Taiwanese law prohibits Chinese investment in certain segments of the semiconductor industry, including chip design, while investments in areas such as chip packaging require strict government approval, limiting the ability of Chinese semiconductor firms to operate legally on the island. (Arise News)