Apple Supplier Luxshare Accused of Illegal Operations and Talent Poaching in Taiwan

Zinger Key Points
  • Apple’s supplier Luxshare faces accusations of illegal operations and talent poaching in Taiwan, named by the Ministry of Justice.
  • Taiwan intensifies crackdown on Chinese firms like Luxshare and Zhejiang Dahua to protect its semiconductor industry from IP theft.

Apple Inc’s AAPL Chinese supplier Luxshare Precision Industry is accused by Taiwanese law enforcement of illegally operating in Taiwan and attempting to poach high-tech talent.

The Ministry of Justice Investigation Bureau identified Luxshare as one of eight Chinese companies involved in these illicit activities.

This move is part of Taiwan’s broader efforts to counter aggressive tactics by Chinese firms to steal intellectual property and recruit local expertise, Reuters reports.

Also Read: Taiwan Semi Leverages Asian Expertise and Culture for Chip Manufacturing Edge

In addition to Luxshare, the investigation bureau also named Zhejiang Dahua Technology, a video surveillance equipment maker that the United States blacklisted in 2019 due to its involvement in the surveillance of Muslim minorities in Xinjiang, Reuters writes.

According to the report, Zhejiang Dahua allegedly established two covert locations in Taiwan, attempting to mask its operations by listing its employees under another company’s name.

Taiwan, which China claims as its territory, has intensified its crackdown on such illegal activities, viewing them as direct threats to its semiconductor industry. The industry includes Apple and Nvidia Corp NVDA supplier Taiwan Semiconductor Manufacturing Co TSM.

Meanwhile, CEOs of major chip companies, including Nvidia and Advanced Micro Devices Inc AMD, will assemble at Taiwan’s Computex event to discuss artificial intelligence’s prospects.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo by Rabanser via Shutterstock

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