In the backdrop of tightening U.S. restrictions around advanced AI chips, Beijing is increasingly trying to “poach”  talent from Taiwan, with an aim to obtain access to AI and semiconductor technology, according to a report from Taiwan government.

According to a statement released by the Ministry of Justice Investigation Bureau of Taiwan(MJIB), 11 Chinese enterprises were recently investigated by Taiwanese officers on suspicion of “illegally recruiting Taiwanese high tech talent.”

“Chinese enterprises often disguise their identities through various means, including setting up operations under the guise of Taiwanese or overseas Chinese or foreign-invested companies. While in reality, they are being backed by Chinese capital, establishing unauthorized business locations in Taiwan without government approval, and using employment agencies to falsely assign employees to Taiwanese firms,” read a statement from MJIB.

China considers Taiwan as part of its own territory as the semi-conductor giant country in East Asia remains a hotly contested tech region for both the U.S. and the dragon. Taiwan has accused China of carrying out sophisticated large-scale cyber attacks to dismantle its digital infrastructure.

Taiwan is home to TSMC, the world’s largest chip manufacturer. It supplies chips to big companies like Nvidia and Apple. Because of rising tensions with the United States, China aims to become an independent leader in advanced chips production.

The report also warns about other threats from China that include cyberattacks, fake news, and the use of deepfake technology to influence Taiwan’s local elections later this year. In early 2026, Taiwan’s government systems faced more than 170 million cyberattack attempts. At the same time, China has increased military activity near Taiwan, with over 420 aircraft spotted around the island.

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