
Ex-Huawei employees sentenced to jail for stealing semiconductor-related secrets
Huawei Technologies employees to jail for stealing chip-related business secrets from the company, the state-owned Securities Times newspaper reported on Saturday.
According to the report, the Shanghai Third Intermediate People's Court on July 28 sentenced 14 employees of Zunpai Communication Technology, a start-up founded by engineers from Huawei's chip development unit
HiSilicon , to jail terms of up to six years on top of financial penalties.
The court has not published the verdict on its website and it is not known whether the engineers will appeal the ruling. Huawei did not immediately reply to a request for comment.
The case sent shock waves through China's semiconductor industry and highlighted the issue of intellectual property theft on the mainland.
According to the Securities Times report, Zhang Kun, a former researcher at HiSilicon, left Huawei in 2019 and founded Zunpai in March 2021 to develop Wi-fi communication chips. Zhang managed to persuade some of his former colleagues to join him at the start-up.
Huawei Technologies quickly took action against Zunpai. According to a legal document published in August 2023, Shanghai HiSilicon Technology, a Huawei subsidiary, applied to the Shanghai Intellectual Property Court to freeze 95 million yuan (US$13.1 million) worth of assets under Zunpai and its subsidiaries.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


South China Morning Post
28 minutes ago
- South China Morning Post
Safety of Hong Kong workers on site must be a top priority
The death of a worker in a lift shaft late last month once again underlines the need for Hong Kong to push ahead with urgent, comprehensive and persistent measures to make the city's construction sites safer. A Labour Department investigation has been launched into the accident, in which a lift crushed the 57-year-old worker at a Queen Mary Hospital building site. The cause must be established. Such accidents are of particular concern in Hong Kong as most people use lifts on a daily basis. There have been four other lift-related workplace fatalities since 2014. The accident occurred two weeks after a construction worker was killed by a falling iron beam at an airport site during a red rainstorm signal. Last week, a worker fell to his death from the roof of a three-storey village house. Every time a worker dies, whether from a collapse of bamboo scaffolding, heatstroke or other causes, we are reminded of the need for the city to improve its safety record. This year, there have been an estimated 10 industrial deaths. Measures introduced include a heat stress warning system and new technology, such as the use of artificial intelligence to detect risks with bamboo scaffolding. The maximum fine for breaches of safety rules was increased from HK$500,000 to HK$10 million (US$64,000 to US$1.3 million) and two years in jail in 2023. One company linked to five deaths has been removed from the government's list of registered contractors. Lawmakers have rightly questioned the leniency with which offenders have been treated in recent years, pointing out that two contractors convicted a staggering 77 and 55 times respectively had been allowed to keep their licences. Fines in the past six years averaged between HK$8,000 and HK$10,000, nowhere near an effective deterrent. The figures were revealed in a report by the Ombudsman which highlighted systemic safety problems on different levels and warned of 'blatant defiance' of the law in some cases. The number of industrial accidents fell by 9.4 per cent in 2024 compared to the previous year. Still, 22 workers lost their lives.


South China Morning Post
an hour ago
- South China Morning Post
In US-China battle over rare earths, developing nations are the front line
Rare earths are needed for everything from consumer electronics to electric vehicles, wind turbines and fighter jets – and China controls the supply chain. In a four-part series, we look at the race for rare earths, starting with the contest for reserves in developing countries. Former Chinese leader Deng Xiaoping once said that 'the Middle East has oil, China has rare earths'. His words carry new weight today as China's stranglehold over the rare earths supply chain gives it leverage in the trade war with the United States. China controls some 60 per cent of global mining of rare earths, over 85 per cent of their processing, and more than 90 per cent of permanent magnet production – used in everything from cars to medical devices and wind turbines. That leaves the US and other Western nations vulnerable, and many are now scrambling to diversify their supply chains away from China. Analysts say that while there are multilateral efforts under way to reduce reliance on China they are largely diplomatic, and there is a lack of investment or technical expertise to move away from Chinese supply. They also say that developing countries with rare earths are emerging as the new front line of a high-stakes contest between China and the West.


South China Morning Post
an hour ago
- South China Morning Post
Biotech successes helping Chinese intellectual property go global
As Greater China markets charge into the third quarter with the wind at their backs, there is increasing evidence that 2025 is the year Chinese intellectual property goes global. A month ago, I wrote about the peculiar appeal of the Labubu doll , which seemingly leapt out of nowhere to become a global pop culture phenomenon. This was the latest example of a successful Chinese entertainment IP – a unique asset with intangible social value – taking off. Meanwhile, China is also making huge progress in humanoid robotics , an advanced technology segment where the country is dominating. This burgeoning industry is ripe for value creation as robotics developers not only own the production and hardware assets, but also the underlying artificial intelligence IP powering their capabilities. The modern global economy has IP at its core. A 2023 analysis from the UCLA Anderson School of Business calculated that intangible assets comprised more than 90 per cent of the total assets on the balance sheets of S&P 500 companies. The market increasingly sees IP as the catalyst for further growth in Chinese stock valuations, with the latest prominent example being China's booming biotechnology sector. While Hong Kong's Hang Seng Index finally turned bullish this year and is up more than 20 per cent in the year to date, the Hang Seng Biotech Index has nearly doubled.