Free Daily Shoot" 10 industry players sued for using the name of the Chinese Academy of Sciences to help China fraudulently purchase controlled chips

The New Taipei District Prosecutor's Office directed the Investigation Bureau to detect a major illegal resale of U.S. strategic high-tech chips to China, and prosecuted Chen Jianxiong, the head of Youhuo Technology, and others. (Bloomberg file photo)

Censorship affects national security and damages Taiwan’s international image

[Reporter Wang Dingchuan/New Taipei Report] The New Taipei District Prosecutor's Office directed the investigation bureau to detect a major illegal resale case of strategic high-tech chips in the United States. Chen Jianxiong, the head of Youhuo Technology, and others were suspected of pretending to be the Chinese Academy of Sciences in 2017 and fraudulently purchased high-standard controlled chips produced by Texas Instruments and Andron Semiconductor from domestic agents. 600 million yuan; the prosecutor accused Chen Nan and others of helping China use sufficient force, affecting national security and damaging Taiwan's international image. They prosecuted Chen Jianxiong and other ten people for crimes including aggravated fraud under the criminal law, and sentenced Chen Qiu to ten years in prison.

Profits by disguising the place of origin 3. 600 million

Chen Jianxiong, head of Youhuo Technology, seeks ten years in prison

According to the prosecutor's investigation, the defendants exported more than ten types of controlled chips, originating from the United States, the Philippines and other countries, which can be used for radar, electronic reconnaissance, drones, missiles, aerospace electronics and other military purposes. According to regulations, to obtain such chips, an end-user purchase statement must be issued to confirm the end user, purpose and flow direction. If it is an overseas customer such as China, the original manufacturer or agent will refuse the transaction.

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The investigation found that Chen Jianxiong once worked for the well-known chip agent Anchi Technology. He used companies such as Youhuo he established and controlled or colluded with other industries to fake the end user as the Chinese Academy of Sciences and promised "not to export or resell to targets subject to U.S. sanctions." This deceived domestic chip agents or original manufacturers into selling chips, and then resold them to buyers in China or Hong Kong by changing the model, outer packaging, and declaring them as "Made in Taiwan," making a profit of one. Two hundred million yuan.

Prosecutor Chen Xiangjun found out that another person who fraudulently purchased chips was Lai Jinlan, the head of Enjoy Investment. Since 2019, he had colluded with Jiang Kuncheng, the head of Huaji Technology, to sell controlled chips to Hong Kong buyers using the same method. One of them was a U.S. military military-certified grade chip, with a profit of 1. 300 million yuan; Yuan Tongtai, head of Huizhong Communications and Development Technology, also imitated the above method to sell chips, one of which can be used in drones, making a profit of more than 100 million yuan.

Prosecutors sought ten years in prison for Chen Jianxiong, eight years for Yuan Tongtai, six years each for Jiang Kuncheng and Lai Jinlan, and the other six sought prison terms ranging from one to three years.

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