Two managers at a Hong Kong-based company were on Monday granted deferred prosecution for illegally setting up a business in Taiwan.
Analogix Semiconductor Inc (硅谷數模科技) business manager Teng Yun (滕筠) and an assistant manager surnamed Cheng (鄭) were also fined NT$500,000 each, the Taipei Shilin District Prosecutors’ Office said.
Investigators found that Analogix is wholly backed by Chinese funds, although it is registered as a Hong Kong company that engages in IC design and packaging in Taiwan as part of the semiconductor supply chain.
Analogix registered its business in Taiwan in 2012 and opened an office in Taipei’s Neihu District (內湖), Ministry of Economic Affairs records show.
Its owner was listed as Yang Kewei (楊可為), the records show.
The Ministry of Justice’s Investigation Bureau in March conducted searches at eight companies allegedly backed by Chinese funds, including Analogix, and detained more than 60 people for questioning.
Yang has since fled Taiwan and a wanted bulletin has been issued for him, prosecutors said.
Bureau officials said the companies stole proprietary technology and other trade secrets from Taiwanese firms, and recruited Taiwanese professionals in high-tech sectors to work in China.
Teng and Cheng were aware that Chinese-backed companies may not set up offices or operate in Taiwan without approval from government agencies, prosecutors said.
Their actions have contravened the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (台灣地區與大陸地區人民關條例), they said.
Teng was in charge of sales and promotion, while Chang was responsible for customized IC design and packaging for customers.
The duo were granted deferred prosecution, because they admitted to wrongdoing, had no prior criminal record and their activities did not cause too much damage, they said.
Additional reporting by Jason Pan
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