A newly formed Chinese company using the likeness of a firm formed in Taiwan and technology developed with an investment from a government-affiliated organization could be just the tip of a national security iceberg and must be investigated, a legislator said yesterday.
After Hestia Power Inc (瀚薪科技), started with support and investment by the Industrial Technology Research Institute, was dissolved last month, staff from the company turned up in Shanghai at a new venture called Shanghai Hestia Power Inc (上海瀚薪科技), Taiwan People’s Party (TPP) Legislator Ann Kao (高虹安) told a news conference at the Legislative Yuan in Taipei.
The Shanghai firm has the same leaders and team members, and even uses the same logo, she said.
Photo: Peter Lo, Taipei Times
“This is a national security issue, for China to steal our core technology and skilled talent in the semiconductor industry,” she said, adding that the government must close legal loopholes to prevent such an incident from recurring.
“How can institute-subsidized research and development end up in China to aid them in surpassing Taiwan in a key sector of the semiconductor industry?” she said.
Institute officials said the institute is cooperating with an investigation into breach of trust and other possible contraventions.
The semiconductor industry and its supply chain are not affected by the incident, they said.
Hestia, which had been selected as one of Taiwan’s high-tech “future stars,” developed silicon-carbide materials used in semiconductors, an important component in electric vehicles and 5G networking technology, Kao said.
Lee Chuan-ying (李傳英), who headed Hestia, went to China before Hestia was dissolved, and then set up Phoenix Power Inc (凰騰公司), using Hestia’s address, she said.
There were suspicious aspects to the flow of money and transfer of technology and staff, she said, adding that there was possibly negligence or failure in Taiwan’s main protection mechanisms, including in the Trade Secrets Act (營業秘密法) and measures on the transfer of technology to foreign countries.
The government must amend regulations to stop China from stealing the nation’s key technologies.
Additional reporting by Jason Pan
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