Taiwanese investigators have accused Semiconductor Manufacturing International Co. (SMIC), China's largest chipmaker, of illegally recruiting high-technology talent from the island. The Ministry of Justice Investigation Bureau (MIJB) stated that SMIC utilized a Samoa-based entity to establish a subsidiary in Taiwan under the pretense of foreign investment, actively poaching skilled workers. The MIJB initiated its investigation in December 2024, scrutinizing eleven Chinese enterprises suspected of talent poaching. Authorities conducted searches at 34 locations and questioned 90 individuals as part of the probe. These actions highlight Taiwan's commitment to protecting its valuable semiconductor expertise. SMIC gained prominence in 2023 after being identified as the manufacturer of the 7-nanometer chip used in Huawei's smartphones. The company had previously been placed on a U.S. government export blacklist. China has been actively working to strengthen its domestic chip manufacturing capabilities through SMIC. However, the company lags behind industry leaders like Taiwan's TSMC. Furthermore, U.S. export restrictions prevent SMIC from accessing advanced chipmaking tools from suppliers such as ASML, hindering its ability to close the technology gap. Taiwan is a significant hub for semiconductor talent, largely due to being the home of TSMC, the world's leading chipmaker. The United States has also been trying to attract this talent and expand its own chip manufacturing capabilities by encouraging TSMC to build more facilities within the U.S. Taiwan's MJIB established a special task force in late 2020 to investigate allegations of illegal talent poaching, demonstrating the ongoing concern over the issue. The Ministry further elaborated on the tactics employed by Chinese companies, noting that they often conceal their true identities by operating under the guise of Taiwanese, overseas Chinese, or foreign-invested entities. These companies may also establish unauthorized business locations in Taiwan without proper government approval and use employment agencies to falsely assign employees to Taiwanese firms. These methods are used to circumvent regulations and gain access to Taiwan's skilled workforce.
