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The Taiwan authorities have raided ten Chinese semiconductor companies in Taipei and Hsinchu, suspecting them of illegally recruiting chip engineers, Reuters reported.

Taiwan law prohibits Chinese investment in key parts of the semiconductor supply chain, including chip design and requires reviews for areas such as chip packaging.

Taiwan is a world leader in semiconductor production but China is on a mission to reduce its semiconductor trade deficit and is therefore to recruit staff.

Taiwan’s Investigation Bureau said on Thursday (May 26) that fresh raids were part of a crackdown on illegal poaching by Chinese companies. It said nearly 70 people have been summoned for questioning but did not name the companies involved but said they included IC design firms and electronic component makers.

The latest move comes after eight companies were raided in March.

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