Warning that Taiwanese talent is being poached with impunity by Chinese companies, lawmakers yesterday called on the Ministry of Economic Affairs (MOEA) to address the problem and fix legal loopholes to stop a brain drain.
The loss of technical talent to China has been a long-standing problem as Taiwan seeks to protect its superiority in the semiconductor supply chain. However, the case of Hestia Power Inc (瀚薪科技) has thrust the issue into the spotlight again.
Hestia Power was started with technology and investment from the government-funded Industrial Technology Research Institute (ITRI, 工研院), an incubator for tech start-ups. The company was dissolved in February, only for staff from the company to turn up in Shanghai at a new venture called Shanghai Hestia Power Inc (上海瀚薪科技), legislators said at a meeting of the Economics Committee in Taipei.
Photo: CNA
ITRI president Edwin Liu (劉文雄) told lawmakers that the institute’s patents have not been infringed upon, to the best of his knowledge.
“We transferred the technology for 600-volt silicon carbide to Hestia in 2013, along with personnel,” Liu said. “After Hestia was dissolved last month, we recalled our patents and have not found any evidence thus far that Shanghai Hestia has infringed upon those patents.”
While there is no proof of patent infringement, it does not mean Taiwanese tech know-how has not been leaked, Democratic Progressive Party (DPP) Legislator Chen Ting-fei (陳亭妃) said.
“They do not need to be so stupid as to infringe on our patents when they have our people,” Chen said. “They will innovate using our patents as their basis and register more advanced patents.”
“On the surface, we have the laws, but in reality our talent and technology are going to China. The red supply chain is recruiting in Taiwan with impunity,” she said.
Chen said that it is a national security issue as long as China is stealing core technology and skilled talent from Taiwan.
She lamented that there has been no follow-up by government agencies after Beijing-based Bitmain Technologies Ltd’s (比特大陸) two Taiwanese units were raided on March 9 by investigators for allegedly poaching Taiwanese experts.
Minister of Economic Affairs Wang Mei-hua (王美花) said that the Trade Secrets Act (營業秘密法) has already been strengthened in a recent amendment, putting the onus on enforcement.
“China is eager to recruit semiconductor talent, more so in the wake of the US-China trade war,” Wang said. “What they often do is set up a foreign or Taiwanese-owned company as a front.”
Wang said she would look into strengthening regulations against ITRI or other non-governmental organization personnel going to China and would come up with a proposal “within two months.”
Liu said that ITRI would boost internal regulations to stop the talent flight.
“People need to know that if they go it is a one-way ticket,” he said.
However, beyond preventing Taiwanese talent from going to China, Liu said that it is important to think about how to encourage people to stay in Taiwan.
“We need to think about how we can improve the investment environment in Taiwan,” Liu said. “There are not enough venture capital funds for early-stage companies.”
National Security Bureau Deputy Director-General Hu Mu-yuan (胡木源) said that China’s efforts are a threat to not just Taiwan, but also Japan and South Korea, posing a risk to global trade and fair competition.
“Moreover, the Chinese communists are stealing other countries’ intellectual property to boost their own power,” he said.
Additional reporting by Reuters
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