Abstract:
Taiwanese prosecutors are investigating Unimicron Technology for allegedly relabeling printed circuit boards made in China as made in Taiwan. The case has drawn renewed attention to the company's supply chain compliance issues. The printed circuit boards and advanced packaging materials produced by Xinxing Electronics are widely used in high-performance computing, artificial intelligence and smartphone markets.
The Taoyuan District Prosecutor's Office recently raided the headquarters of Xinxing Electronics in Guishan District, Taoyuan City, and a manufacturing factory in Zhongli District, and summoned 14 executives and employees to report to the case. Prosecutors have not yet announced whether charges will be filed and the investigation is ongoing.
The focus of the case is that Xinxing Electronics was accused of shipping printed circuit boards made in China to Taiwan and then changing the labels to indicate Taiwan as the product’s origin. The prosecutor stated that the relevant actions were suspected of violating the provisions of the Criminal Law regarding document forgery and false indication of the origin of products, and would continue to collect evidence.
A general manager of Xinxing Electronics' printed circuit board department, surnamed Wang, posted bail for NT$15 million (approximately US$474,000); a deputy general manager surnamed Wu posted bail for NT$12 million. The other three people paid deposits ranging from NT$300,000 to NT$5 million respectively, and the remaining nine people were released without bail.
Xinxing Electronics spokesman Zhong Mingfeng said that the company is "fully cooperating with the investigation of disputes about the origin of products."
The case received special attention because Xinxing Electronics supplies materials used in advanced semiconductor packaging. The company is one of the major manufacturers of Ajinomoto Build-up Film (ABF) carrier boards, which are used in high-performance computing, artificial intelligence and smartphone chips. The company also produces printed circuit boards.
Both Nvidia and Intel are customers of Xinxing Electronics. It is unclear whether the two companies are related to the products involved in the case, whether the relevant circuit boards have been exported to the United States, or whether the case involves ABF carrier boards.
The case also raises new questions for electronics buyers who must track where parts are produced and related documents. Product origin claims can affect customs treatment, trade compliance and purchasing decisions, especially for hardware used in artificial intelligence servers and other advanced computing systems.
The investigation comes as U.S. officials are stepping up scrutiny of technology supply chains with ties to China, particularly those involving advanced artificial intelligence hardware. If prosecutors determine that products made in China were transited through Taiwan and relabeled before export, the incident could prompt closer scrutiny by customers and regulators.
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