Taiwanese authorities have investigated 166 cases over the last six years involving companies accused of concealing ties to China. Additionally, the Ministry of Justice Investigation Bureau (MJIB) has completed 67 probes into trade-secret theft within the technology sector. These enforcement actions are part of a broader effort to protect the island's semiconductor industry from illegal investments and talent poaching.
The crackdown intensified in 2020 when the MJIB launched a special operation utilizing 2,000 investigators. Recent activity includes raids on 18 technology companies between July 13 and August 5. Prosecutors often target firms that bypass the Cross-Strait Act by using shell companies or foreign nationals to disguise Chinese ownership, a tactic frequently used to recruit local engineers.
Legal consequences for these violations have become more severe. Under the National Security Act, unauthorized transfer of critical technologies can lead to 12-year prison sentences and fines up to TWD 100 million. In the Hsinchu District, which handles the highest volume of these cases, prosecutors have charged approximately 190 individuals across 60 cases related to illegal business operations.
High-profile investigations include the case of Xiaomi, where executives were convicted in 2024 for operating an unauthorized chip R&D unit. Another case involves an arrest warrant issued for OnePlus founder Pete Lau regarding an alleged unauthorized software outfit. Despite criticism from Beijing, which labels the investigations as politically motivated, Taiwan maintains these measures are vital for national security.