Two Taiwanese were given three years deferred prosecution for their roles in helping two leading Chinese tech companies operate illegally in the country, the Taipei District Prosecutors’ Office said.
The two men, surnamed Doong (董) and Chang (張), had admitted wrongdoing and were handed deferred prosecution as part of their settlements reached with prosecutors, a court document issued on Tuesday showed.
As part of the agreements, Doong and Chang were handed penalties of NT$500,000 (US$16,124) and NT$300,000, while the two companies Doong had established in Taiwan — CXMOS and Tenafe Taiwan Technology Ltd — were ordered to make payments of NT$500,000 and NT$300,000 into the national coffers.
Photo: Taipei Times
Doong worked as an assistant manager at Wuhan-based Yangtze Memory Technologies Co (YMTC, 長江存儲) — a Chinese semiconductor integrated device manufacturer specializing in flash memory chips — from 2016 to 2019, the prosecutors said.
In November 2017, under that company’s instruction, Doong set up CXMOS in Taiwan, imported chip samples from YMTC and interviewed people in Taiwan for sales positions, in a bid to explore business opportunities in the nation, prosecutors said.
Doong was also accused of establishing and running Tenafe Taiwan Technology Ltd in May 2019, a subsidiary of Tenafe Beijing, which shipped semiconductor components, printed circuit boards and chips from its headquarters to be used as samples and for testing, as a way to boost the Beijing company’s sales in Taiwan.
Chang took over Doong’s position at Tenafe Taiwan in June 2021 and interviewed more than 30 engineers, prosecutors said.
It was found that about NT$500 million from YMTC and Tenafe Beijing had been indirectly channeled into CXMOS and Tenafe Taiwan’s bank accounts to boost funds available to them, the prosecutors said.
They said they believed Doong and Chang’s actions had breached Article 40-1 of the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例).
The clause says that an enterprise from China or an enterprise it invested in a third area cannot “engage in any business activities in Taiwan” unless it is “permitted by the competent authorities and has established in the Taiwan Area a branch or liaison office.”
The penalty cited for violating Article 40-1 is up to three years in prison and/or a fine of up to NT$15 million.
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