For Taiwan, its semiconductor industry is strategic for three fundamental reasons: it represents among 13% and 15% of the gross domestic product of the country; is the engine of its exports with a value close to 40% of the total; and, finally, the production of cutting-edge chips gives the country enormous relevance from a geostrategic point of view. For this reason, it is crucial for this Asian country that TSMC, UMC, Foxconn, MediaTek and its other large technology companies have the workforce they need.
TSMC, the largest chip manufacturer on the planethunts for new talent year after year to satisfy its needs. During 2023 recruited 6,000 engineers for its facilities in Taiwan, and presumably this trend also continued in 2024 and 2025. And between 2026 and 2028 it will launch several semiconductor manufacturing plants in the US, Germany, Taiwan and Japan. Be that as it may, neither this company nor any other Taiwanese company linked to the development of integrated circuits and artificial intelligence (AI) can afford to lose human capital. And they are losing it.
Taiwan investigates 100 cases in its “silent technology war” against China
The Investigation Bureau of the Ministry of Justice of Taiwan is investigating 11 Chinese companies due to their possible involvement in recruiting talent in semiconductors, AI and other sectors linked to high-tech development, according to SCMP. Since 2020, the Government of Taiwan is dealing with 100 cases of possible talent theft in the field of engineering, and it is no coincidence. China has launched a huge talent search campaign in semiconductors and AI against the backdrop of its deep technological rivalry with the US.
The 11 Chinese companies under investigation have been accused of illegally recruiting engineers
The 11 Chinese companies that are being investigated by the Taiwanese Administration have been accused of illegally recruiting engineers by hiding their continental origin, creating front companies and establishing commercial operations in Taiwan without government approvalaccording to the Investigation Bureau of Taiwan’s Ministry of Justice. Abishur Prakash, a geopolitics expert at the Canadian consultancy ‘The Geopolitical Business’, maintains that:
“This is a silent technological war compared to the noisy fight between the US and China (…) While the US focus usually lies on export controls or attracting foreign capital, the Chinese focus is on those critical pieces, such as talent, that will drive the next innovations in AI. Taiwan is fully aware of this.”
One of the Chinese companies that are in Taiwan’s sights due to their possible involvement in talent theft is SMIC (Semiconductor Manufacturing International Corp), the largest Chinese semiconductor manufacturer with a global market share of about 5%. This company is the best asset that Xi Jinping’s Government currently has to sustain China’s technological development. Hua Hong Semiconductor and SMES (Semiconductor Manufacturing Electronics Shaoxing) are also two very important chip manufacturers, but the real spearhead of this gigantic Asian country in this industry is SMIC. This company is partially public and has, as expected, the support of the Chinese Government.
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More information | SCMP
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