Taiwan prosecutors search Unimicron over suspected origin fraud
Taiwan prosecutors searched Unimicron offices over suspected false 'Made in Taiwan' labels on China-made circuit boards, part of a crackdown on origin washing.
Taiwanese prosecutors have searched the offices of Unimicron Technology, a major printed circuit board (PCB) maker, over allegations that it mislabelled some of its China-manufactured products as being made in Taiwan.
The searches, conducted on Saturday in the northern city of Taoyuan, targeted two company locations. Prosecutors said they questioned 18 individuals, including both defendants and witnesses, as part of the investigation.
According to a statement from the Taoyuan prosecutors' office, the suspected false labelling could breach Taiwanese law and may involve document forgery. The case is part of a broader government crackdown on so-called "origin washing" — a practice where companies falsely claim goods are made in Taiwan to qualify for preferential tariff treatment, even though the products actually originate from China or other locations that face higher export duties.
Unimicron acknowledged the searches in a filing to the Taiwan Stock Exchange on Friday night, stating that its offices had been searched and that it would fully cooperate with the authorities. The company has not yet responded to requests for further comment.
The issue of origin washing has drawn international attention. The White House said earlier this month that the United States loses an estimated $19 billion to $26 billion in annual tariff revenue on goods — largely from China — that are transshipped through third countries to avoid U.S. import duties.