Chip war: Taiwan accuses 8 mainland Chinese firms of poaching talent, stealing secrets

The eight companies named include Naura Technology Group, which counts mainland China’s largest chip makers as clients.

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Naura is one of eight mainland Chinese companies accused by Taiwanese authorities of poaching talent from the island. Photo: Bloomberg

Ann Caoin Shanghai

Published: 9:42pm, 4 Sep 2024

Taiwanese authorities have accused eight mainland Chinese tech companies, including chip equipment giant Naura Technology Group, of illegally poaching talent from the island, underscoring growing cross-strait tensions as Beijing doubles down on its semiconductor self-sufficiency drive.

The Ministry of Justice Investigation Bureau in Taiwan said in a statement published on its website on Wednesday that it raided 30 locations and questioned 65 individuals in four cities, including Taipei and Hsinchu. The agency found that eight mainland companies were suspected of poaching talent and stealing trade secrets in Taiwan, which “seriously affects the competitiveness of Taiwan’s hi-tech industry”.

The eight companies were Naura, iCommsemi, Shanghai New Vision Microelectronics, Nanjing Aviacomm Semiconductor, Emotibot, Tongfang, Chengdu Analog Circuit Technology, and Hestia Power.

Naura – which produces etching, deposition and cleaning tools, as well as other chip-making gear – allegedly poached semiconductor equipment engineers in Taiwan. The Beijing-based company supplies to the mainland’s largest chip makers, including Semiconductor Manufacturing International Corporation, Yangtze Memory Technologies Corporation, and Hua Hong Semiconductor Group.

In a statement to the Post on Wednesday, Naura denied poaching local workers. The company said its Taiwan office “was established and operates in accordance with local laws and regulations”.

Beijing is engaging in a semiconductor self-reliance drive. Photo: Reuters

Many of the companies named by Taiwanese investigators, including iCommsemi and New Vision Microelectronics, specialise in chip design. Meanwhile, Emotibot develops automation artificial intelligence platforms based on technologies such as natural language processing and deep learning.