Taiwan sues three employees of a Chinese packaging and testing company for setting up a factory in Taiwan without permission to cut corners

Nantong, Jiangsu Province, China, a major semiconductor packaging and testing company, Tongfu Microelectronics, illegally set up an R&D and business center in Taiwan’s Taiyuan Technology Park without obtaining a permit. The Hsinchu District Attorney’s Office on the 15th will be three people to violate the “cross-strait people’s relations regulations” prosecution. Semiconductor industry high-tech talent and technology is considered Taiwan’s “protector of the sacred mountain”, Taiwan is increasingly strengthening the prevention of mainland enterprises to poach talent, technology theft.

According to a press release issued by Taiwan’s Hsinchu District Prosecutor’s Office, Tomflight Microelectronics set up private R&D and business centers in Taiwan, poached high-tech talents for technology development and sales operations, and illegally engaged in business activities in Taiwan. The prosecutor searched three premises, summoned 15 suspects and witnesses to the case, and seized secrecy contracts, employee rosters and other physical evidence on May 13.

The Hsinchu District Prosecutor’s Office pointed out that the man surnamed Hao had been the head of the Taiwan office of Tongfu Microelectronics since 2014 and was responsible for recruiting Taiwanese employees to set up R&D, business and sales teams. The man surnamed Lai took over as the general manager of Tomflight Taiwan in 2019, responsible for customer service and product development; another woman surnamed Wu has been the marketing director of Tomflight Microelectronics since 2018, responsible for the development and marketing of driver chips and packages in Taiwan and China. All three defendants are being prosecuted for violating Article 40-1 of the Cross-Strait People’s Relations Regulations. This provision means that a profit-making enterprise in mainland China may not engage in business activities in Taiwan unless it is authorized by the competent authorities and has established a branch or office in Taiwan.

Taiwan Democratic Progressive Party (DPP) legislator Zheng Yunpeng said in response to our questions, “Business Secrets Act” after the Legislative Yuan amended the law to provide corporate self-protection, they also found that there are many abducted to China, seemingly well-paid Taiwan engineers, to China was used up, the original contract, the terms immediately null and void, can only become a wandering in China, “Taiwan stream “.

Zheng Yunpeng: “In addition to the government must strictly investigate the illegal in Taiwan by soliciting and attracting high-tech talent, I also want to remind these engineers, national friends, if you were not the market conditions were attracted to China, usually use less than two years, all your things are gone, and even the foundation is gone, and even can not return to Taiwan.”

Chinese companies to lure Taiwan engineers with high salaries Zheng Yunpeng: do not try the law with your body

Zheng Yunpeng reminded the parties concerned, not to be cheated there will be no illegal problems, there will be no national security concerns, there will be no parent company’s questions, this part or to hold their own.

DPP legislator Liu Shifang pointed out that for a long time, especially during the administration of former President Ma Ying-jeou, the trade between the two sides of the Taiwan Strait, including commercial espionage, technical espionage and even hunter-headed programs are given the green light, there is no relevant supporting measures to prohibit.

Liu Shifang: “The world knows that Taiwan’s semiconductor industry is one of the best, and China, which is hostile to us, also wants to do all kinds of different methods including headhunting and technology theft. In the Legislative Yuan we amend the “Business Secrets Act”, these few just mentioned individual programs are part of the “cross-strait people’s relations regulations” inside the violation of national security.”

Nantong Fuji Microelectronics is a “red enterprise” hidden in the details

According to the Baidu encyclopedia, Nantong Fujitsu Microelectronics Co., Ltd (referred to as Tongfu Microelectronics) was established in October 1997 and has more than 4,000 employees. “As a national and provincial high-tech enterprise, the company has always been at the forefront of technological development in the industry. The introduction also mentions that “the company has undertaken and completed a number of national and provincial technical transformation projects, which have strongly promoted the industrialization of advanced packaging and testing technology in China.”

The official website of Tomflight Microelectronics also posted a “Company News” mentioning that a red song party with the theme of “Always Follow the Party” was held to celebrate the centenary of the founding of the Communist Party of China, including Shen Su-min, special assistant to the president of Tomflight Microelectronics and executive deputy director of the president’s office, and Li Jinjian, secretary of the party committee of Nantong Huada Microelectronics The event was attended by Party Secretary Li Jinjian.

Chen Yiqi, chairman of the Taiwan-based Progressive Party, analyzed the usual tactics of Chinese companies, one of which is to exploit loopholes, and then the corporate structure is well hidden. Chen Yiqi cited the example of Huawei, such as the surface looks like a “private enterprise”, but Ren Zhengfei’s identity, Huawei is still considered a private enterprise?

Chen Yizi: “I think we should readjust, some companies come to Taiwan to poach, even if it is a Chinese private enterprise, we need to be more careful. Chinese capital or Chinese companies or Chinese people, are using all kinds of infiltration, cleverly into Taiwan.”

Hsinchu District Attorney’s Office in the press release especially stressed that high-tech talent and technology is Taiwan’s “protector of the sacred mountain”, the District Attorney’s Office actively investigated the case of mainland enterprises packaging and testing majors stealthy technology park poaching domestic high-tech talent, continue to curb China’s theft of Taiwan’s trade secrets, malicious poaching of talent crime, to prevent the infiltration of Chinese enterprises, in order to ensure that Taiwan High-tech industry development, maintain the competitive edge of the industry, and protect the lifeblood of the national economy.