China Targets Taiwan’s Chip Tech to Evade Global ‘Containment’: Taipei Government

China is targeting Taiwan to obtain its advanced chip manufacturing technology and talent as a way of breaking through international “containment” of the country, according to a report from the island’s top security agency.

China’s scramble for chip talent and expertise has intensified as Beijing pushes for self-reliance in advanced semiconductors, amid a deepening tech rivalry with the U.S.

Taiwan, which China claims as its own territory, frequently reports busting networks of Chinese firms illegally trying to poach semiconductor and high-tech talent, and has strict laws to prevent the most advanced technologies going to China.

In a report to lawmakers, Taiwan’s National Security Bureau said that China is attempting to “lure” Taiwan’s high-tech industries, including AI and semiconductors, to establish or retain operations in China.

“It also continues to use indirect channels to poach Taiwanese talent, steal technology, and procure controlled goods, with the aim of obtaining key core technologies and products such as Taiwan’s advanced-process chips, thereby breaking through international technological containment.”

China’s Taiwan Affairs Office did not immediately respond to a request for comment. China says Taiwan is one of its provinces and will eventually come under Beijing’s control.

Taiwan is home to TSMC, the world’s largest contract chipmaker and major supplier to companies including Nvidia and Apple.

China is also expected to use a range of hybrid methods, including deepfakes and fake opinion polls, to interfere in Taiwan’s year-end local elections, according to the report, a copy of which was reviewed by Reuters.

Taiwan’s Government Service Network was targeted by more than 170 million intrusion attempts in the first quarter of this year, added the reported, delivered ahead of bureau Director-General Tsai Ming-yen taking lawmaker questions on Wednesday.

“It cannot be ruled out that the Chinese Communist Party is laying the groundwork to interfere in Taiwan’s year-end elections, with the intent of expanding intelligence collection, surveillance, and data theft,” the report said.

Taiwan also faces ongoing Chinese military pressure.

In the first quarter, more than 420 Chinese military aircraft were detected operating around Taiwan, and Chinese naval vessels coordinated with them in carrying out 10 “joint combat readiness patrols,” the report added.

China’s Communist Party faces mounting risks due to domestic and external pressures such as economic weakness and geopolitical competition, it said.

“Nevertheless, it continues to employ a range of hybrid threats against Taiwan, including military intimidation,” the report added.

Taiwan’s government rejects Beijing’s sovereignty claims, saying only the island’s people can decide their future.

(Reporting by Ben Blanchard and Yimou Lee; additional reporting by Beijing newsroom)

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