Taiwan prosecutors raid Unimicron over alleged China origin fraud

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Taiwanese prosecutors raided Unimicron, a key supplier to Nvidia and Intel, on August 28 over allegations it relabeled China-made PCBs as Taiwanese. Investigators questioned 14 employees as suspects and released two senior managers on bail totaling NT$27 million. The probe comes as Taiwan cracks down on origin washing to avoid U.S. tariffs of up to 40%.
Key Facts
- Unimicron is one of the world's largest PCB and chip substrate makers and supplies Nvidia, Intel, Google, and Amazon.
- Prosecutors raided Unimicron's headquarters in Taoyuan's Guishan District and a plant in Zhongli District on August 28.
- The PCB business general manager, identified as Wang, was released on bail of NT$15 million (about $473,000).
- U.S. Customs and Border Protection has applied an additional 40% tariff on goods transshipped through third countries since August last year.
- The White House has identified 40 countries and territories as posing an elevated risk of illegal transshipment, with Taiwan flagged as a key concern.
The Raid
Taiwanese prosecutors raided Unimicron's headquarters in Taoyuan's Guishan District and a manufacturing plant in Zhongli District on August 28. Investigators questioned 14 employees as suspects, including the general and deputy general managers of its PCB business, and four more people as witnesses. The Taoyuan District Prosecutors Office said there was strong suspicion the company violated Taiwan's law covering the use of forged private documents and false labeling of goods. Unimicron told the Taiwan stock exchange it is fully cooperating with the investigation and does not expect a material impact on operations.
Bail and Charges
Wang, the PCB department general manager, was released on bail of NT$15 million (roughly $473,000). A deputy general manager identified as Wu was released on NT$12 million (roughly $378,000). Three others posted bail ranging from NT$300,000 to NT$5 million, and the remaining nine were released without bail. The alleged conduct contravened Articles 216, 210, and 255 of Taiwan's Criminal Code, covering forged private documents and false labeling of origin.
U.S. Tariff Risk
Since August last year, U.S. Customs and Border Protection has applied an additional 40% tariff on goods determined to have been transshipped through third countries to evade duties. If any relabeled Unimicron PCBs reached the U.S., the penalty would fall on the company's American customers as importers of record. The White House has identified 40 countries and territories as posing an elevated risk of illegal transshipment, with Taiwan flagged as a key concern. Taipei has been running major crackdowns on origin washing, where companies claim goods are made in Taiwan to obtain preferential tariff treatment.