Taiwan indicts 10 for smuggling US military-grade chips to China, parts routed to missile and radar programs using forged Taiwan defense institute orders

Taiwanese prosecutors have indicted ten individuals for allegedly smuggling high-speed military-grade chips from U.S. companies, Texas Instruments and Analog Devices, to China. The counterfeit orders used the name of Taiwan's defense research institute and were marked as "Made in Taiwan." These chips were reportedly delivered to Chinese research units constructing missile and radar systems.

Prosecutors believe the chips originated from countries like the U.S., Thailand, the Philippines, and South Korea, despite being labeled as Taiwanese to avoid detection. The charges include fraud, forgery, and violations of Taiwan's Money Laundering Control Act. If convicted, the defendants could face up to ten years in prison and the confiscation of their ill-gotten gains.

The case highlights the potential security risks posed by such illicit trafficking of military components, which could undermine trust in Taiwan among its allies, particularly the United States. The defendants, who allegedly profited from these illicit deals, included distributors, former employees of ADI and TI, and other Taiwanese companies.