Taiwan investigators have accused China’s leading chipmaker, Semiconductor Manufacturing International Co. (SMIC), of illegally recruiting high-tech talent from the island.
Taiwan’s Ministry of Justice Investigation Bureau (MJIB) stated that SMIC had allegedly used a Samoa-registered entity as a front to establish a subsidiary in Taiwan under the pretense of foreign investment. The bureau claimed the company had been “actively recruiting” Taiwanese semiconductor professionals through this hidden setup.
Taiwan’s authorities launched an investigation into the matter in December 2024, targeting 11 Chinese companies suspected of talent poaching. According to the MJIB, agents carried out searches at 34 locations and questioned 90 individuals in connection with the probe.
SMIC, China’s largest semiconductor manufacturer, gained international attention in 2023 after it was identified as the producer of the 7-nanometer chip used in Huawei’s smartphones. The company has been under scrutiny for years and was added to a U.S. export blacklist, restricting its access to advanced chipmaking technologies.
Despite China’s efforts to boost its domestic semiconductor industry, SMIC remains technologically behind rivals like Taiwan Semiconductor Manufacturing Company (TSMC). U.S. export restrictions further limit SMIC’s ability to acquire cutting-edge chipmaking equipment from key suppliers such as ASML.
Taiwan, home to TSMC—the world’s leading and most advanced chipmaker—is a critical hub for semiconductor expertise. The U.S. has actively sought to leverage this talent by persuading TSMC to expand manufacturing operations in America.
The MJIB revealed that it established a special task force in late 2020 to crack down on illegal talent poaching by Chinese firms.
“Chinese enterprises often mask their identities through various tactics, such as posing as Taiwanese or foreign-owned companies, securing unauthorized business locations, and using employment agencies to covertly recruit local talent,” the bureau stated.
This case shows the growing tensions between Taiwan and China over the race for semiconductor supremacy as Taiwan continues to safeguard its highly skilled workforce from foreign exploitation.
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