Investigation: Chinese science companies stealthy Taiwan, waiting for the opportunity to poach or involved in theft of secrets

According to unofficial statistics, among the newly registered IC design companies in Taiwan in the past five years, there are at least 50 or more with funds coming directly or indirectly from China and with research teams established in Taiwan.

Cases of Chinese Communist infiltration in Taiwan have long been reported, especially in the technology industry. In July 2019, Epoch Times published a report on the seven major methods of Chinese Communist Party infiltration in Taiwan’s technology industry. In recent years, Chinese technology companies have been invading the doorstep, using various identities as cover or roaming the gray areas to set up bases in Taiwan, waiting for opportunities to poach and even seize business secrets.

According to unofficial statistics, in the past five years, Taiwan’s new IC design companies, about 60 to 100, including funds directly or indirectly from China, and the establishment of research teams in Taiwan, at least 50 or more.

Disguised as financially strong Taiwanese companies recruiting in Taiwan

Today’s Weekly recently published an investigative report on Chinese companies’ stealthy presence in Taiwan and their poaching, and revealed that in addition to the two major clusters of Chinese companies in Taiwan, the Taiyuan Technology Park in Hsinchu and the Neihu Park in Taipei, the footprints of Chinese technology companies can be found everywhere in the streets of Taipei.

For example, the former top executive of MediaTek’s smartphone division, surnamed Zhu, is rumored to have jumped to OPPO as a consultant shortly after moving to Xiaomi, and the latest news is the establishment of a “Yuanman Technology Consulting Company” in Taipei, which is low-key, but “quite strong” in financial resources The latest news is the establishment of a “Yuanman technology consulting company” in Taipei City, is low-key, but the financial resources “quite strong” recruiting.

Located in the Zhubei Taiyuan Technology Park, “Hong Kong Xinze Digital” has been rumored to be the Taiwan “branch” of Spreadtrum, a subsidiary of the Purple Group, which was exposed in 2014 for allegedly stealing secrets from MediaTek engineers to defect. One of the protagonists of this case, the former MediaTek cell phone chip department, surnamed Yuan, a senior executive, also settled in Zhubei in 2019, the establishment of the “British Virgin Islands Business Vision Core Intelligence”, the technology circle of people on the source of funding for this company is also much speculation.

The media investigation shows that whether directly or indirectly from China’s IC design companies, most of them are registered as Taiwan companies in the name of Taiwan supervisors, renting general offices, the amount received by supervisors is about two times the salary of the original work, the recruitment of grass-roots engineers, the salary rose to between 1.2 times and 1.5 times the original work.

The hunter’s head tactics covert “fence” or “hang sheep’s head to sell dog meat”

On March 9 this year, two companies, Taiwan IGS and Core Road, were searched by the Taiwan District Prosecutor’s Office because they were suspected of cooperating with mainland chip design companies, setting up private R&D centers, forming high-paid poaching groups and poaching hundreds of Taiwan semiconductor talents in three years without the approval of the Ministry of Economic Affairs.

According to the collation of “This Week”, Chinese companies in Taiwan to steal secrets or poaching methods include “anonymous”, that is, the form of “overseas foreign investment” registration, so that people can not guess the connection with China; or “hanging sheep’s head to sell dog meat “, on the surface is an electronic trading company, but in fact is a hunter head company; or “fence”, most of the Taiwan branch to rent a corner of the plant, and began to poaching; also by recruiting talent to steal technology, and even from the “steal” to “back The article quotes a senior member of the technology industry as saying that the company has been “stealing” and “carrying” technology.

The article quoted a senior technology sector, the year Huawei’s IC design company, the establishment of the most critical chip process, from Taiwan Ji Yuan Technology poached a team of engineers, step by step to build up.

Some well-known Chinese science companies have been through different forms of layout in Taiwan

The report also disclosed that some well-known Chinese companies, such as the Chinese Communist Party authorities organized the “National Integrated Circuit Standardization Technical Committee” member Tencent, SMIC, Ziguang, and other key players in the industry, such as Changjiang Storage, Hefei Changxin, Zhaoyi Innovation, Wisdom Microelectronics, etc., I am afraid that all through different forms of layout in Taiwan.

People are familiar with Huawei, Xiaomi, OPPO have also landed in Taiwan, it is rumored that even Alibaba has a company in Zhubei.

Chinese companies to Taiwan to poach is the normal competition in the industry?

Some industry insiders believe that Chinese companies come to Taiwan to solicit high-tech talent, is a normal situation of free competition in the industry.

A senior member of Taiwan’s national security unit was not convinced, saying that China should not be treated as an ordinary country, and citing that the United States has targeted China’s semiconductor industry, listing six major areas and 50 kinds of methods used by the Chinese Communist Party to steal technology, reminding the industry to be vigilant.

Taiwan Academia Sinica associate researcher Wu Jianhui said, the Chinese Communist Party poaching or take away business secrets is not the problem. The fundamental problem is that these Chinese companies are systematically poaching Taiwanese talents and stealing Taiwanese technology with the support of the state.

Wu further said that competition disputes between manufacturers can usually be resolved through criminal and civil law. But when the commercial espionage model or poaching model is based on state support, it is not simply a competitive relationship between manufacturers.

The sensitive topic of the Chinese Communist Party poaching talent and stealing key technologies in Taiwan is one that Taiwan’s semiconductor industry is mostly reluctant to touch. Financial veteran media personality Xie Jinhe, on the other hand, hailed that Taiwan should have a sense of crisis, “Beware of the opening of the gateway to Taiwan’s protective group of mountains!” He wrote on Facebook that this is the most important barrier to Taiwan’s security protection.