Taiwan Cracks Down on Chinese Firms Illegally Recruiting Tech Talent
- Cay
- 6 days ago
- 1 min read
Taiwanese authorities have intensified their crackdown on Chinese technology companies that are allegedly luring top Taiwanese engineers through secretive recruitment tactics. The move is part of a broader effort to protect the island’s semiconductor industry, which plays a crucial role in global technology and supply chains.
Investigations Reveal Unlawful Hiring Practices
Recent government investigations uncovered that at least 11 Chinese firms, including the major chipmaker Semiconductor Manufacturing International Corporation (SMIC), have been secretly poaching Taiwanese talent. Authorities allege that these companies circumvented local employment laws by setting up offshore shell companies or operating through unauthorized business entities within Taiwan.
In a coordinated operation, law enforcement conducted searches at 34 locations connected to the suspected firms. More than 90 individuals, including engineers and recruitment agents, were questioned about their involvement. The Taiwanese Ministry of Justice stated that these companies failed to obtain the necessary approvals to hire local professionals, violating national security laws.
Taiwan’s Push to Protect Its Semiconductor Industry
Taiwan is home to some of the world’s leading semiconductor manufacturers, including Taiwan Semiconductor Manufacturing Company (TSMC). Given the increasing global demand for advanced chips, Taiwan’s government has strengthened its policies to prevent unauthorized talent migration to China, which has been striving to build a self-sufficient semiconductor sector amid ongoing U.S. trade restrictions.
To counter illicit recruitment, Taiwan has introduced stricter regulations that impose harsher penalties on companies engaged in talent poaching. Despite these measures, Chinese firms continue to explore new ways to acquire Taiwan’s expertise, raising concerns about potential trade secret leaks.
