Taiwan probes 17 China-funded firms over high-tech talent poaching

Taiwanese investigators said Wednesday they have raided dozens of locations as part of a probe into 17 Chinese-funded companies suspected of trying to "illegally" poach Taiwan's high-tech talent to erode the island's competitive edge.

Taiwan is a powerhouse in the global semiconductor industry, producing nearly all of the most advanced chips for companies including Nvidia and Apple.

China is racing to develop the advanced chips used to power artificial intelligence systems, as it faces export restrictions imposed by the United States.

More than 300 investigators searched 64 locations and interviewed 114 people in recent weeks, the Ministry of Justice Investigation Bureau said in a statement.

Investigators said the companies allegedly sought to conceal the identity of their Chinese financial backers while establishing "unauthorised" operations or "illegally" recruiting talent.

As AI competition intensifies, Taiwanese firms face the "challenge of having their core high-tech talent targeted and recruited by 'Chinese' companies, leading to the loss of their core competitive advantages," the statement said.

Taiwan has long accused China of carrying out espionage activities on the island, which Beijing claims is part of its territory and has threatened to seize by force.

Last month, Taiwanese prosecutors charged a former TSMC employee with stealing the chipmaking giant's "core" technology and attempting to leak it to China.

Prosecutors also have detained seven people, including an Nvidia worker, in a separate case involving the alleged smuggling of the US tech giant's AI chips to China.