Taiwanese authorities have launched an investigation into 17 Chinese companies accused of illegally recruiting semiconductor and other high-tech professionals from the island in what officials described as a coordinated effort to protect the country’s technological advantage.

The Ministry of Justice’s Investigation Bureau said the operation involved coordinated raids conducted between July 13 and August 4, during which investigators searched 64 locations and questioned 114 people over allegations that the companies operated unlicensed offices and unlawfully recruited Taiwanese technology workers.

According to the bureau, Taiwan’s long-standing leadership in semiconductor manufacturing and artificial intelligence is the product of decades of technological development and remains a strategic national asset that must be protected.

The agency warned that the country’s competitive edge is increasingly under pressure from Chinese firms seeking to lure away highly skilled professionals from Taiwan’s technology sector.

Among the companies named in the investigation is Chinese semiconductor equipment manufacturer ACM Research Shanghai, one of several publicly listed technology firms now under scrutiny.

The companies had not responded to the allegations as of the time of filing this report.

Investigators alleged that some of the firms concealed their identities by posing as Taiwanese or foreign companies, established offices on the island without the required government approval and deployed personnel to recruit local technology workers in violation of Taiwanese law.

Taiwan has intensified efforts in recent years to curb what it describes as illegal recruitment activities by Chinese companies, carrying out similar coordinated investigations, including a series of raids in March.

The latest investigation comes against the backdrop of continued tensions between Taipei and Beijing. China claims Taiwan as part of its territory and has not ruled out the use of force to bring the self-governed island under its control.

Taiwan rejects Beijing’s sovereignty claims, maintaining that only its people have the right to determine the island’s future.

Under Taiwanese law, Chinese investment is prohibited in certain segments of the semiconductor industry, including chip design, while investment in areas such as chip packaging is subject to strict government approval, limiting the operations of Chinese semiconductor firms on the island.