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Taiwan Moves On Dodgy Chinese Companies Trying To Steal Tech IP

Like South Korean Companies, Samsung and LG the Government of Taiwan has moved to ban the employment of their skilled nationals in an effort to prevent the theft of technology in particular semiconductor manufacturing information.

China who has a reputation for stealing the IP of technology Companies while also copying other Companies designs is now being targeted by various Governments around the world including Australia and the USA.

Among the Chinese Companies identified by Taiwanese authorities as recruiting Taiwanese engineers with big pay packages are Xiaomi and Oppo who have recruited semiconductor veterans from Taiwan’s MediaTek, the world’s second-largest mobile chip developer, to boost their own chip ambition.

This week Taiwan has told staffing companies to remove all listings for jobs in China, a drastic move to prevent the outflow of vital tech talent to the mainland amid rising tensions between Taipei and Beijing.

The Labor Ministry said that all Taiwanese and foreign staffing companies may no longer post openings for jobs located in China, especially those involving critical industries such as integrated circuits and semiconductors, according to a notice seen by Nikkei Asia.

The move comes as Beijing seeks to build up the mainland’s semiconductor industry — a goal that has intensified demand for Taiwanese engineers.

“Due to geopolitical tension between the U.S. and China, China’s semiconductor development has suffered some setbacks and as a result China has become more aggressive in poaching and targeting top Taiwanese chip talent to help build a self-sufficient supply chain,” the ministry said in the notice.

Recruitment platforms and head-hunters are barred from helping or representing any company in efforts to hire individuals for work in mainland China. Violators face fines from the ministry.

“If the recruitment involves semiconductors and integrated circuits, the penalty will be even higher,” the notice said.

Nikkei Asia claims the new rules apply not only to mainland and foreign companies, but also Taiwanese businesses such as iPhone assemblers Foxconn and Pegatron that have massive manufacturing bases in China, a 104 Job Bank spokesperson said.

(Photo: AAP)

Companies like Foxconn “will also have to remove all of their job listings on the platform first, and then put them back on under their Chinese subsidiaries, which are already approved by Taiwan’s Investment Commission for operating in China,” according to the spokesperson.

Taiwan’s sophisticated semiconductor supply chain has long been targeted by China, looking to recruit talent to accelerate Beijing’s tech advancement. More than 100 employees have been hired from top global chipmaker Taiwan Semiconductor Manufacturing Co. by Chinese state-backed chip projects Quanxin Integrated Circuit Manufacturing (Jinan), better known as QXIC, and Wuhan Hongxin Semiconductor Manufacturing Co. (HSMC), though the latter has been terminated.

China has long viewed the democratic Taiwan as part of its territory. But relations between the two sides soured following the U.S.-China tech disputes. Taiwan’s chip industry ranks second only to the U.S., and Washington hopes to partner with Taipei to curb Beijing’s tech advancement.

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