● Covered by 1 source · 1 reportMedium impact1 negative
Taiwan Indicts 10 for Smuggling US Military-Grade Chips to China
Key points
- 10 individuals indicted in Taiwan for chip smuggling.
- Military-grade chips from TI and ADI sent to China.
- Forged orders used Taiwan's defense institute name.
- Chips were destined for Chinese missile and radar programs.
Indictment Details
Taiwanese prosecutors have indicted 10 company leaders for their alleged involvement in smuggling military-grade chips to China. The chips, manufactured by Texas Instruments (TI) and Analog Devices (ADI), are high-speed military-industrial parts on Taiwan’s strategic high-tech commodities list. These components are restricted from export to China, Hong Kong, or Macau by the U.S. Commerce Department.
Smuggling Method
The defendants allegedly used the name of Taiwan’s National Chung-Shan Institute of Science and Technology (NCSIST) or other Taiwanese companies to order the chips, claiming they were for use within Taiwan. False end-user statements were provided, promising no re-export to U.S.-sanctioned parties and adherence to U.S. export regulations. The chips, manufactured in the U.S., Thailand, the Philippines, and South Korea, were then declared "Made in Taiwan" to bypass customs.
Destination and Impact
Investigators believe the smuggled chips were ultimately supplied to Chinese research units involved in building missiles and military radar. The equipment cited included radar receivers, electronic reconnaissance, jammers, ultrasound, communications gear, and antenna arrays. This illicit trade generated significant profits for the defendants, with three main groups earning over NT$92 million, NT$135 million, and NT$108 million respectively.
Legal Consequences
The charges against the individuals include fraud, forgery, and Money Laundering Control Act offenses, with prosecutors seeking sentences of 2 to 10 years for each defendant. Prosecutors also requested the confiscation of all illicit gains. They argue that the trafficking of military components poses a serious threat to Taiwan’s national security and could damage trust between Taiwan and the U.S.
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Reporting from
Taiwanese prosecutors have indicted 10 individuals for allegedly smuggling military-grade chips from Texas Instruments and Analog Devices to China. The chips, intended for Chinese missile and radar programs, were reportedly exported using forged orders from Taiwan's defense research institute and falsely labeled as "Made in Taiwan." This incident raises concerns about national security and potential distrust from the U.S. regarding Taiwan's export controls.