Taiwan Accuses Chinese Apple Supplier Luxshare of Stealing Secrets, Charges 14 People

Taiwan prosecutors on Friday accused a China Apple supplier of stealing trade secrets from a Taiwanese supplier and poaching its military to win orders from the US company, saying it indicted 14 people.

Taiwan is stepping up efforts to stop what it sees as clandestine and illegal activities by Chinese firms to poach talent in what the government sees as a threat to the island’s technological prowess.

Prosecutors in New Taipei said after a year-and-a-half investigation they had found that China’s Luxshare Precision Industry had targeted Taiwanese competitor Catcher Technology “in order to quickly enter the Apple production chain to win orders”.

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Luxshare “lured” Catcher’s China-based research and development team with promises of high salaries and stole trade secrets from the Taiwanese firm, causing them huge losses, prosecutors said in a statement.

Taiwan Accuses Chinese Apple Supplier Luxshare of Stealing Secrets, Charges 14 People
Taiwan Accuses Chinese Apple Supplier Luxshare of Stealing Secrets, Charges 14 People

Luxshare was doing this in order to be able to “quickly build factories and mass produce cases for iPhonesiPads and other products,” the statement said. Luxshare did not immediately respond to a request for comment, and neither did Apple.

New Taipei prosecutors have now charged 14 people in the case with breach of trust and taking trade secrets for overseas users, they added.

“The department will do its best to investigate such cases to maintain the fair development of our country’s enterprises and ensure the competitiveness of the national industry.”

Catcher, which makes iPhone and iPad cases, said in a statement that it continues to implement and optimize the protection of trade secrets and intellectual property rights and will investigate any violation of its rights and interests.

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In May, Taiwanese authorities raided 10 companies or their R&D centers operating in Taiwan without approval suspected of illegally poaching chip engineers and other tech talents.

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