A former tech executive is under investigation for allegedly luring more than 100 people to work for Chinese state-owned firm Tsinghua Tongfang Co in a serious breach of national security, prosecutors said on Thursday.
Chen Yu (陳俞), a former executive of chip manufacturer United Microelectronics Corp (UMC) and former vice chairman of PC manufacturer Shuttle Inc, was on Thursday released on bail of NT$1 million (US$31,273) and prohibited from leaving the country after questioning by prosecutors.
Chen has been listed as a suspect and faces charges of contravening provisions of the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例), information from the Taipei District Prosecutors’ Office showed.
Photo: Chen Tsai-ling, Taipei Times
Working together, the Ministry of Justice Investigation Bureau and Taipei prosecutors earlier this year uncovered large flows of funds from China to Uniwill Technology, a gaming laptop and PC producer based in Taipei’s Neihu District (內湖) that is headed by Chen.
After stints at UMC and other tech companies, Chen worked as deputy chairman at Shuttle Inc, but left in 2014 to establish Uniwill Technology, which was co-owned and jointly funded by Tsinghua Tongfang, a subsidiary of Chinese state-owned China National Nuclear Corp (CNNC), an investigation found.
The bureau uncovered evidence that Chen offered high salaries to lure more than 100 information technology (IT) workers, including computer engineers, designers and technicians, from Shuttle to Uniwill Technology.
Aside from poaching talent from his old company, Chen also posted adverts on job bank sites and social media to recruit people with IT industry experience to work on research, development and design of computer and gaming applications, which are then transferred from Uniwill to Tsinghua Tongfang and subsequently to CNNC, prosecutors said.
Chen breached the law requiring Chinese investments and companies to apply for approval from the Ministry of Economic Affairs to set up business in Taiwan, they said.
His covert actions and poaching of Taiwanese talent to help Chinese state-owned firms research, develop and design IT products for Chinese state-owned firms undermine Taiwan’s security, they said.
While working at Shuttle Inc in early 2010s, Chen learned that the company’s executives refused to sell, purchase or deal with Chinese firms like Tsinghua Tongfang, prosecutors said.
Chen then contacted the Chinese company on his own, saying he was willing to cooperate and do business with them, they said.
He began secret talks with Tsinghua Tongfang, providing it with plans and arrangements for establishing a new company in Taiwan, they said.
He covered up the sources of Chinese funding for the new firm, Uniwill Technology, which on paper lists him as the sole proprietor and operator, they said.
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