Unimicron Technology searched by Taiwan prosecutors over suspected origin fraud

Taiwanese prosecutors have searched the offices and facilities of Unimicron Technology, a major printed circuit board (PCB) manufacturer, on suspicion of “origin washing.” Investigators allege the company may have falsely labeled products manufactured in China as being made in Taiwan to secure preferential tariff treatments.

The Taoyuan District Prosecutors Office conducted searches at the company’s headquarters and its Zhongli plant. Prosecutors have questioned 18 defendants and witnesses, involving allegations of document forgery and violating laws against the fraudulent marking of goods. Several high-ranking executives, including the general manager and vice president, have been released on bail following questioning.

Unimicron has stated it is fully cooperating with the investigation. The company clarified that the dispute primarily concerns its PCB products rather than its high-end substrate products. The news has significantly impacted the company’s market performance, with its stock price hitting the daily limit down following the reports.

The crackdown is part of a broader government effort to prevent companies from using Taiwan as a transshipment point to bypass U.S. import duties on Chinese goods. The White House has previously noted significant annual tariff revenue losses due to such practices.