Taipei: The Ministry of Justice’s Investigation Bureau announced Thursday that 16 Chinese tech companies are being scrutinized for setting up offices in Taiwan without authorization and hiring local talent illegally.

According to Focus Taiwan, over 300 investigators were deployed between July 15 and August 6 to conduct searches at 70 different locations across Taipei, New Taipei, Taoyuan, and Hsinchu. During these operations, 120 individuals associated with these companies were summoned for questioning. The investigation highlights concerns about the high-tech industry, which is crucial to Taiwan’s economy and has become a target for Chinese companies seeking skilled personnel in the sector.

The companies in question are accused of falsifying their business registrations, masquerading as branch offices of overseas firms with foreign or Taiwanese investment, and hiring employees without proper authorization. The list of companies includes Lontium Semiconductor Corp., Cista Limited, Novosense Microelectronics Co., Chipone Technology (Beijing) Co., and Huntkey Group.

The bureau cited Cista as an example, alleging that the company used a Hong Kong-based entity as a front to appear as a foreign company, enabling it to establish an office in Taiwan and recruit local semiconductor talent. Similarly, Huntkey is suspected of setting up a branch office under the pretense of being based in Hong Kong, thereby illegally recruiting PC power supply engineers in Taiwan.

These activities have significantly impacted the competitiveness of Taiwan’s high-tech industry, the bureau emphasized, reiterating its commitment to cracking down on unauthorized operations by Chinese firms within the country.