Taiwan · China · Blue Origin · U.S. · Rest of World
Taiwan’s six-year hunt for China’s undercover chip labs
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In the spring of 2020, a Taiwanese engineer felt “extremely lucky” to be offered a job as a chip designer at Blue Ocean Smart System, an American company based in his hometown Hsinchu, the heart of Taiwan’s semiconductor industry.
Key facts
- Thanks to companies like Taiwan Semiconductor Manufacturing Company, known as TSMC, Mediatek, and United Microelectronics Corporation, the island nation produces over 60% of the world’s
- Blue Ocean Smart System is one of the 166 cases investigated by Taiwanese authorities over the past six years for allegedly concealing ties to China, according to exclusive data provided to Rest
- What followed confirmed the engineer’s suspicion: In August 2021, Taiwanese authorities raided Blue Ocean Smart System, alleging that the company illegally operated in Taiwan by disguising
- In the spring of 2020, a Taiwanese engineer felt “extremely lucky” to be offered a job as a chip designer at Blue Ocean Smart System, an American company based in his hometown Hsinchu, the heart
Summary
But several months into his new role, the engineer, who was 32 at the time, noticed something strange: He was never in touch with any American coworkers, and there was no information about the U.S. office. What followed confirmed the engineer’s suspicion: In August 2021, Taiwanese authorities raided Blue Ocean Smart System, alleging that the company illegally operated in Taiwan by disguising its Chinese ownership behind a locally registered company. The Taiwan-registered company shared the exact same English name as Nanjing-based Blue Ocean Smart System, while its Chinese name differed by one character. “I was explicitly told that the company was backed by American investment,” the engineer told Rest of World, recalling the inconsistencies he picked up during his time there.