Taipei:Prosecutors in Taipei have indicted a man for allegedly managing an unregistered office for a Chinese semiconductor company, Lontium Semiconductor Corp., and are seeking an 18-month prison sentence.

According to Focus Taiwan, the Taipei District Prosecutors Office announced that Lin Hao-yuan, who led Lontium's office in Taipei, faces charges under the Act Governing Relations between the People of the Taiwan Area and the Mainland Area. This law prohibits Chinese companies from conducting business in Taiwan without the necessary approvals and a legally established branch or liaison office.

Prosecutors revealed that Lontium, headquartered in Hefei, Anhui Province, China, had previously set up an office in Taipei's Neihu District in 2012. However, the company's board decided to close it in January 2015, and the closure was approved by Taiwan's Ministry of Economic Affairs that same month.

Despite this, as Lontium's business grew, its Chairman Chen Feng allegedly instructed Lin in July 2024 to establish a new office in Taipei's Zhongshan District to function as its Taiwan base. This was done without the required authorization, and the company reportedly recruited high-tech engineers to engage in chip research, development, testing, and technical services in Taiwan.

Additionally, prosecutors have issued a wanted notice for Chen, though no further details were provided. Lontium was one of 16 Chinese technology firms investigated by Taiwan's Ministry of Justice's Investigation Bureau last August for allegedly setting up unauthorized offices and hiring local staff.