Are Taiwanese chip talents becoming prey? Foreign media reported that China could offer up to 10 times the salary, and experts warned that this could damage the moat in the long run. (Reuters)
[Financial Channel/Comprehensive Report] Is it possible that Chinese technology companies are hiding "right under your nose" in Taiwan? Foreign media warn that the real concern in Taiwan's chip war is not necessarily the outflow of equipment or technology, but that some Chinese companies may conceal their actual control relationships through shell companies in third places, registration of non-Chinese persons, etc., while locking in Taiwan's semiconductor talents with high salaries.
Foreign media "Cybernews" reported that the salary offered by Chinese companies to Taiwanese chip workers can be up to 10 times the local salary. The key is that China needs experienced semiconductor workers to help its chip industry catch up, and the world lacks sufficient expertise to build and operate advanced wafer fabs; therefore, the real treasure may be Taiwan's chip experts. Experts warn that brain drain and hidden ownership could undermine Taiwan's dominance of the chip sector over time.
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Since 2020, the Investigation Bureau of Taiwan’s Ministry of Justice has investigated 166 cases of Chinese companies suspected of stealing Taiwan’s business secrets, and 36 cases have been clearly convicted so far. Although Chinese companies can operate in Taiwan, they must obtain government approval under the "Cross-Strait People's Relations Ordinance", which also creates incentives to conceal their actual background.
Taiwanese investigators pointed out that some companies may set up shell companies through third countries, or register them by non-Chinese persons, making the companies appear to be Taiwanese companies or have no obvious connection with China. Foreign media believe that if regulatory authorities cannot confirm the true owner of a company, it will become more difficult to determine who is exposed to Taiwan's technology industry and who may have access to key talents and knowledge.
Kit Conklin, chief of strategy and global affairs at supply chain management company Exiger, described this as an "extremely serious threat." He pointed out that Chinese companies involved in dual-use or critical technologies such as artificial intelligence are particularly good at concealing their connections with the Chinese military or other sensitive end users. Therefore, "who ultimately owns or controls the enterprise" becomes particularly important.
Conklin believes that if regulatory agencies cannot grasp the ultimate beneficial owner, it will be difficult to confirm who has actually entered Taiwan’s technology industry. He advocates that Taiwan establish an open and centrally managed ultimate beneficial ownership (UBO) database to make it more difficult to hide control relationships.
Relevant investigations are not limited to unfamiliar startups. The report pointed out that large Chinese technology companies such as Xiaomi, OnePlus, Oppo and SMIC have all been named in relevant investigation reports. However, the truly more valuable target may be "people".
The report pointed out that Chinese companies are accused of actively recruiting Taiwanese semiconductor talents, and the salaries they offer may be several times that of local ones, and some are even as high as 10 times. Conklin believes that the reason is simple: China hopes to accelerate its semiconductor industry to catch up, and the number of talents in the world who are truly familiar with the manufacturing, design and operation of advanced wafer fabs is already limited.
Conklin pointed out that the wafer fab is "one of the most complex technologies ever created by mankind," and talent is an important bottleneck for industrial development. The manufacturing, design and troubleshooting experience accumulated by a senior Taiwanese chip engineer cannot be quickly replicated by investment in equipment alone. He warned that if the loss of such talents continues, Taiwan's current huge semiconductor advantage may be weakened in the long term. He even took the German automobile industry as an example, believing that if existing industrial advantages cannot be protected, there may eventually be a risk of industrial hollowing out.
This competition also takes place in the context of the larger Sino-US chip war. China is working hard to build its own semiconductor industry, while the United States continues to restrict Beijing's access to advanced chips and manufacturing technology. Conklin believes that the front line of the chip war is entering the supply chain itself, and the United States will also increase its focus on front companies and shell companies that help obtain restricted technology.
For Taiwan, the real problem is not just to prevent technology from being taken away, but how to clearly see the control relationships hidden behind corporate registrations while retaining the chip talents that are most difficult to copy and most easily poached by high salaries.
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