Taiwanese prosecutors have indicted a sales director for illegal recruitment of four former colleagues. Shen Chi-te worked for Suzhou Novosense Microelectronics Co, a Chinese microelectronics firm. He set up a base in Taiwan as part of his role for the company. Consequently, this illegal recruitment violated Article 40-1 of the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area. That law prohibits Chinese enterprises from conducting any business activities in Taiwan without proper permits. The Taipei District Prosecutors’ Office announced the indictment today after a thorough investigation.
Shen joined Novosense as its East Asia sales director in 2021. He then rented an office in Taipei’s Daan District to establish operations. The following year, he recruited four former Texas Instruments colleagues to work for the Chinese firm. Therefore, this illegal recruitment involved paying salaries through offshore human resources companies. The employers wired US dollars from Singapore and Hong Kong to avoid detection. Novosense did not enroll Shen or his four recruits in standard labor insurance. The company also used alternative means to secure health insurance for them. Shen holds a bachelor’s degree in physics and a master’s in electrical engineering from National Taiwan University.
The case first came to light in July and August of last year. The Ministry of Justice’s Investigation Bureau conducted searches of Chinese companies suspected of poaching Taiwanese tech talent. Investigators took Shen in for questioning during those operations. They later released him on bail of NT$500,000. Consequently, this illegal recruitment case highlights ongoing concerns about Chinese firms targeting Taiwanese semiconductor expertise. Taiwan possesses a world-leading semiconductor industry with highly skilled engineers. China aggressively seeks to recruit these professionals to advance its own technology sector. However, Taiwanese law strictly regulates such activities by foreign enterprises.
Prosecutors charged Shen under Article 40-1 for engaging in business without permits. The illegal recruitment also violated rules about hiring local talent for foreign entities without government approval. The four former colleagues have not faced charges, as they were the recruited parties rather than the recruiters. Shen acted as the sole organizer of the entire operation on behalf of Novosense. The company itself may face separate legal consequences under Taiwanese law. This illegal recruitment case represents one of several recent investigations into Chinese firms operating in Taiwan. The Investigation Bureau continues monitoring similar activities across the tech industry.
Looking ahead, the court will schedule a trial date for Shen Chi-te. If convicted, he could face significant fines and possibly imprisonment. Taiwanese authorities have stepped up enforcement against unauthorized Chinese business activities. The semiconductor sector remains a critical national security concern for Taiwan. Therefore, this illegal recruitment case sends a warning to other companies attempting similar tactics. The government promises to protect domestic talent from being exploited by foreign entities without proper oversight. For now, the investigation continues regarding Novosense’s overall operations in Taiwan. Prosecutors have not ruled out additional charges against other individuals or the company itself.
