Three Taiwanese executives at Chinese firms were yesterday indicted for allegedly recruiting Taiwanese high-tech talent to work in China.
They work for Nanjing-based Blue Ocean Smart Co, while the suspect in a similar case works for Shenzhen-based EFun Technology Co, the Hsinchu District Prosecutors’ Office said.
One of the suspects, a 57-year-old man surnamed Chang (張), in 2019 registered a subsidiary of Blue Ocean in Hsinchu County, which is allegedly hired Taiwanese to work in China and operated a research division aimed at passing on Taiwanese-developed technologies to China, prosecutor Tsai Yi-chen (蔡宜臻) said.
Photo: Tsai Chang-sheng, Taipei Times
Blue Ocean focuses on IC chip design and production, as well as artificial intelligence applications, Tsai said.
Chang and two local executives heading the subsidiary’s hardware and software divisions, surnamed Lee (李) and Lin (林), were responsible for recruiting Taiwanese talent, Tsai said.
Investigators found that the Chinese parent company from October 2019 to January 2020 invested NT$157 million (US$5.49 million at the current exchange rate) in the local subsidiary, Tsai said.
The funding was used for salaries, renting an office, research and other activities, Tsai said.
The subsidiary did not apply with the Investment Commission, as required for Chinese firms wishing to invest in Taiwan, Tsai said.
Chang, Lee and Lin were charged with breaching the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (台灣地區與大陸地區人民關係條例), Tsai said.
“The three helped China’s Blue Ocean Smart Co extend its reach into Taiwan,” Tsai said, adding that Taiwan’s core technologies need to be protected.
In related news, prosecutors also investigated activities of a person surnamed Shih (石), who in 2017 registered a subsidiary of a Hong Kong-based firm.
They suspect that the local firm is covertly owned by China’s EFun, prosecutors said.
The local firm specializes in digital light processing for projectors and other photonics devices, but prosecutors suspect that it sought to recruit Taiwanese engineers and product designers on behalf of the Chinese parent company, they said.
It allegedly also passed on local research results to Shenzhen, they said.
Prosecution of the local firm, which is suspected of breaching laws regulating cross-strait business ties, was deferred, as Shih cooperated with the investigation and paid a NT$150,000 fine, they said.
Shih showed remorse and is to deregister the firm, Tsai said.
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