China's Longxun Semiconductor set up private operating premises in Taiwan without permission. Lin was charged and sentenced to 1 year and 6 months in prison.

The Taipei District Prosecutor's Office concluded its investigation today and prosecuted Mr. Lin in accordance with the law. He specifically requested a sentence of one year and six months. (Photo by reporter Wu Shengru)

[Reporters Wu Shengru and Liu Yongyun/Taipei Report] Since 2018, Chen Feng, chairman of the overseas business of China Longxun Semiconductor (Hefei) Company, has hired Lin Haoyuan, a man, to be responsible for sales, recruitment of engineers and other businesses in Taiwan without obtaining permission from my country’s competent authorities. The investigation found that after Lin recruited engineers surnamed Chen and Liu, he began to sell self-developed chips to Quanta Computer and other companies for profit, which violated the Cross-Strait People's Relations Regulations. The Taipei District Prosecutor's Office concluded its investigation today and prosecuted Mr. Lin in accordance with the law. He specifically requested a sentence of one year and six months.

The inspection found that Longxun Semiconductor (Hefei) Company ranks first in the country and one of the top five companies in the world in the research and development and sales of high-speed audio and video signal transmission chips in China, and has been listed on the Shanghai Stock Exchange. In 2012, the company set up an office in Taiwan to handle related sales business. However, in January 2015, the board of directors decided to cancel the Taiwan office and applied to the Ministry of Economic Affairs for its abolition.

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Unexpectedly, in August 2018, Chen Feng, the head of overseas business, instructed employee Lin Haoyuan to set up a private operation office in Taiwan, responsible for recruiting high-tech engineers, and contacting major companies to sell the company's chips. Chen Feng remits US$2,000 to US$20,000 to Lin Haoyuan's account from time to time as the company's operating expenses in Taiwan.

Since July 2024, due to business expansion, Longxun Company has rented an office in a business center on Fuxing North Road as its operating premises. Since 2018, the company has sold self-developed chips to Quanta Computer, Advantech, Qunguang Electronics and other companies, with revenue of more than 40 million yuan.

When Lin Nan responded to the interview, he told the prosecutor that he had been working for Hefei Longxun Company since 2018, and his monthly base salary was RMB 6,000, but sales bonuses were included, and his annual salary was approximately between RMB 1.8 million and RMB 2 million.

After investigation, prosecutors believe that Chinese companies illegally set up companies in my country through compatriots, evaded the review of the competent authorities and lured industrial talents, and used my country's chip production technology to produce Chinese high-tech chips for China, which will cause my country to lose its advanced process chip technology and market advantages.

In addition, Lin Nan has been in charge of Long Xun Company's business in Taiwan since 2018, assisting the company's annual revenue of more than 40 million yuan, causing serious economic losses to our country. Therefore, Lin Nan was prosecuted in accordance with the illegal cross-strait people's relations regulations and specifically requested a sentence of one year and six months. Chen Feng, the head of Long Xun Company's overseas business, was wanted.

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