Taiwanese prosecutors have indicted 10 company leaders for allegedly smuggling military-grade semiconductor chips to China. The chips included products made by Texas Instruments and Analog Devices and are listed by Taiwan as strategic high-tech commodities.
Prosecutors said the chips were routed to Chinese research units developing missiles and military radar. The defendants allegedly used the name of Taiwan’s defense research institute on orders and falsely labeled the U.S.-made components “Made in Taiwan” to deceive customs officials.
According to prosecutors, former employees and partners of three Taiwanese distributors for the U.S. chipmakers used their own companies to place orders. The distributors were reportedly deceived.