Taiwan Industrial Technology Research Institute (ITRI) technology transfer Hays, which finally became “Shanghai Hays”.
Affected by the U.S.-China technology war, China’s semiconductor development has been hampered, turning to Taiwan to poach, steal secrets, and even buy companies directly. Taiwan media recently revealed that the “Taiwan Industrial Technology Research Institute” (ITRI), which was established with government donations, transferred its research and development technology to the science and technology company “Hays”, but the company finally transferred its technology and talent team to the other side of the Taiwan Strait and became a Chinese-owned company. “Shanghai Hanwei”. Taiwan’s Industrial Technology Research Institute (ITRI) said in the Legislative Yuan on the 31st that “there is no fact of patent infringement after preliminary comparison.” It drew criticism from Taiwan’s legislators.
Taiwan’s financial news magazine in mid-March exclusive disclosure, Taiwan Industrial Technology Research Institute and Hanmin Technology jointly invested in the establishment of “silicon carbide” power semiconductor chip design company Hays, established in 2013, 2021 dissolved. ITRI became a shareholder through the transfer of its innovative industrial technology.
However, the former general manager of Hays Technology, Chuan-Ying Li, became the director of Hays Shanghai in 2019 and has brought his technical team and patents to China many times. Another company, “Phoenix”, was established at the original address of Hays Technology, and Phoenix uses the trademark of Hays Technology directly in its job search website in Taiwan, and its profile directly states that the Hays brand is the main focus.
The article questioned that “the core team of Hays is now all in China.” The article also quoted industry sources as saying, “The core team of Hays is just a new signboard and has all moved to Shanghai for further development.
Taiwan’s Industrial Technology Research Institute (ITRI) has turned into a private enterprise, but it has turned into a Chinese company.
The #ITRI, which was established by government donations, transferred its research and development technology to the science and technology company “#HanPay”, but the company ended up transferring its technology and talent team to the other side of the border and became a Chinese-owned “#Shanghai HanPay”. However, according to the current law in Taiwan, this cannot be done. pic.twitter.com/BSyEHpXcyS
- Radio Free Asia (@RFA_Chinese) March 31, 2021
Taiwan’s Industrial Technology Research Institute (ITRI) President Liu Wen-hsiung went to the Economic Committee of the Taiwan Legislative Yuan on the morning of March 31 to report on how to deal with the various penetrations of the “red supply chain” and the impact on the industry, pointing out that the 600-volt “silicon carbide” technology developed by ITRI in 2013 by Hays. At that Time, there were also colleagues from ITRI who went out to set up Hays, and ITRI also transferred the non-exclusive technology to three other companies, all operating normally. ITRI is also concerned about whether the patent rights are being infringed, and the preliminary comparison results are available.
Liu Wenxiong: “On February 2, after knowing his dissolution, has been transferred to his technology back in the year, also compared to the patent sold to Shanghai Han pay, the preliminary comparison did not infringe the fact. ITRI will continue to explore, if there is any violation of the law ITRI will definitely not be tolerated.”
Taiwan’s ITRI director Liu Wen-hsiung warned that technology talent to China is one way ticket “the road of no return”
Liu Wen-hsiung pointed out in the report that the Hays salary incident is a “warning”, in terms of prevention, legal entities to fully comply with government regulations, internal norms, such as personnel confidentiality provisions, personnel leaving when there is a separation memo, etc., the regulations are very strict, the future to implement is more strictly enforced.
Wen-hsiung Liu: “Technology, the patent has the initiative to actively track whether there is infringement, now to the so-called core technology, that is, although it is not a patent, if we define it as the core technology, to actively and actively track.”
Taiwan’s Industrial Technology Research Institute Director Liu Wen-hsiung said the preliminary comparison of Shanghai Hanwei did not infringe the patent. (Photo by Huang Chunmei)
“We also have to do the sharing of cases, so that colleagues understand that the Chinese capital may be ONE WAY TICKET, a road of no return.” Liu Wenxiong mentioned the psychological construction of establishing personnel, and talent is the most important factor. Liu Wen-hsiung also said that technological progress is not advancing, foreign Chinese encroachment is unavoidable, must strengthen their own scientific research, make themselves stronger, is the best way to prevent Taiwan’s technology is stolen one of the best way.
However, the ITRI’s report made DPP legislator Chiu very dissatisfied. She questioned Taiwan’s Minister of Economic Affairs, Wang Meihua, who questioned the ITRI’s view that Hays did not infringe on the patent rights, and if it was really that simple, why did Hays go to China to start a new business and get Chinese funding and state support, unless the general manager and the entire Hays team were a big fraudulent group.
Minister of Economic Affairs Wang Meihua: “After the establishment of Hays, they have applied for many patents themselves, and the company did move the patents to Shanghai Hays when it was dissolved.”
The company’s patent rights were not infringed upon? There is no ITRI technology transferred to him?”
Minister of Economic Affairs Wang Meihua: “ITRI initially did a technology comparison and investigation, and the initial technology transfer to Hays was the earlier patent, and the patent he applied for later was a different technology by ITRI’s initial comparison.”
Democratic Progressive Party (DPP) legislator Qiu Juying (pictured right) questions Taiwan’s Minister of Economic Affairs Wang Meihua (left). (Screenshot from the live broadcast of Taiwan Legislative Yuan)
The legislator questioned the patent infringement and comforted himself that Taiwan’s semiconductors are in jeopardy
The DPP legislator Qiu Zhouying raised questions, according to the Ministry of Economic Affairs said the patent rights were not infringed may be the early, not so mature and stable patent rights, to now mature patents were taken away by others as a whole. Qiu said, if you still comfort yourself “fortunately my technology has not been infringed.” Then Taiwan’s semiconductor industry is in danger!
In the Ministry of Economic Affairs proposed in response to the “red supply chain” report mentioned, Taiwan’s “Business Secrets Act” after the introduction of criminal liability, leaving employees who stole the original employer’s business secrets, generally punishable by up to five years in prison; if the intention to use the leak in China and other extraterritorial areas, the maximum penalty of 10 years in prison.
According to the statistics of the Ministry of Economic Affairs, from 2013 to the end of February 2021, the District Prosecutor’s Office concluded a total of 863 cases of business secrets, and prosecuted and suspended 234 cases, of which 74 cases of leakage of secrets intended to be used outside of China. The Ministry of Economic Affairs quoted statistics from the Ministry of Justice, saying that “the conviction rate for the year 2020 is 81.4%.
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