Key Nvidia and Intel supplier raided over alleged China origin fraud — Unimicron faces probe over PCB origin washing, risk of 40% U.S. tariff penalty

Taiwanese prosecutors have launched an investigation into Unimicron, a major PCB and chip substrate manufacturer, following allegations from Nikkei Asia that the company shipped China-made PCBs back to Taiwan and relabeled them as Taiwanese products. The probe began on August 28, with authorities raiding Unimicron's headquarters in Taoyuan's Guishan District and a manufacturing plant in Zhongli District, questioning 14 employees and four others as suspects and witnesses.

Wang, the general manager of the PCB department, was released on NT$15 million bail, while a deputy general manager, Wu, was released on NT$12 million bail. Nine others were released without bail, posting bail ranging from NT$300,000 to NT$5 million. Prosecutors suspect the individuals violated Taiwan's laws on forged private documents and false labeling of goods.

Unimicron has stated it is cooperating with the investigation and does not anticipate a material impact on its operations. The U.S. has imposed a 40% tariff on goods transshipped through third countries to evade duties, which could impact Unimicron's American customers if the relabeled PCBs reach the U.S. This investigation is part of Taiwan's crackdown on "origin washing," where companies claim goods are made in Taiwan to obtain preferential tariff treatment.

The White House has flagged Taiwan as a key concern due to its elevated risk of illegal transshipment.