Unimicron Technology origin fraud investigation

Taiwanese prosecutors are investigating Unimicron Technology, a major manufacturer of printed circuit boards (PCB) and chip substrates, for suspected “origin washing” or “origin laundering.” Investigators allege the company may have falsely labeled products manufactured in China as being made in Taiwan to secure preferential tariff treatments and bypass export controls.

In the initial phase of the investigation, the Taoyuan District Prosecutors Office searched the company’s headquarters and its Zhongli plant. Prosecutors questioned 18 defendants and witnesses regarding allegations of document forgery and fraudulent marking of goods. Several high-ranking executives, including the general manager and vice president, were released on bail following questioning. Unimicron stated it is cooperating and clarified the dispute primarily concerns its PCB products rather than its high-end substrate products.

The investigation has caused significant market volatility, with the company’s stock price hitting daily limits and falling by 10% during trading sessions. The crackdown aligns with government efforts to prevent Taiwan from being used as a transshipment point to bypass U.S. import duties on Chinese goods. As a critical supplier of ABF substrates for clients such as Nvidia, Intel, Google, and Amazon, the investigation has raised concerns regarding potential reputational and supply chain risks.