Taiwan investigates 166 cases of illegal Chinese tech ownership, secures 36 convictions since 2020

Crackdown on Illegal Chinese Ownership

Taiwan is actively addressing the issue of Chinese businesses operating illegally within its borders. These companies often circumvent regulations by concealing their ownership through shell companies or by hiring non-Chinese nationals to establish operations.

Taiwan's Cross-Strait Act and related investment rules require Chinese businesses to obtain a government permit before operating. However, political tensions between Taiwan and China have made obtaining such approvals difficult, leading some Chinese entities to operate covertly.

Protecting the Semiconductor Industry

Since 2020, Taiwan's Ministry of Justice Investigation Bureau (MJIB) has investigated 166 cases involving illegal Chinese ownership. Court records indicate that at least 36 of these investigations have resulted in convictions, with penalties including prison sentences of up to three years.

This enforcement effort is crucial for Taiwan, which considers such activities a threat to its national security. Taiwan's "silicon shield" strategy relies on its technological advantage, particularly in semiconductors, to deter potential aggression from China.

China's Drive for Semiconductor Self-Sufficiency

China has been pursuing self-sufficiency in semiconductors and advanced chips since 2015, an effort intensified by Western trade bans and export controls. Chinese companies are attempting to develop their own technologies by recruiting experts and engineers from Taiwan's semiconductor industry, often offering significantly higher salaries.

Taiwan accounts for over 60% of global semiconductor production and approximately 90% of the most advanced processors. China's efforts to build a rival semiconductor industry aim to erode Taiwan's technological advantage and reduce its reliance on external chip sources.