Huawei Engineers Arrested for Chip Secrets Leak

rp 215 Billion in Assets Frozen Amidst Huawei Chip Technology Theft Inquiry

Shanghai, China – Authorities have frozen assets totaling 95 million yuan (approximately Rp 215 billion) belonging to Zunpai Technology, a newly established semiconductor firm, following allegations of intellectual property theft from Huawei’s Hisilicon subsidiary. Teh case,which began in August 2023,culminated in the December 2023 arrest of 14 individuals suspected of stealing confidential chip technology.

The investigation centers around Zhang, a former employee of Hisilicon who left the company in 2019, ostensibly to pursue development of WiFi communication chips. Prior to founding Zunpai, Zhang reportedly recruited personnel from his former workplace, offering competitive salaries and stock options.

According to reports, at least one former Hisilicon employee was allegedly persuaded to copy sensitive chip designs before officially resigning. Investigators found approximately 40 technologies utilized by Zunpai to be identical to those developed by Hisilicon.

Read too: Ai Deepseek turned out to use a Huawei chip too, reduce dependence on Nvidia?

Huawei initiated legal proceedings upon discovering the alleged illicit activity. The Shanghai Police Department confirmed the arrests and asset freeze, emphasizing the importance of legal business practices and fair competition within the technology sector. The investigation highlights the increasing scrutiny surrounding intellectual property protection in China’s rapidly evolving semiconductor industry.

The specific chip technology allegedly stolen has not been publicly disclosed, but Hisilicon is a key designer of processors used in Huawei’s smartphones, network equipment, and other devices. The incident occurs amidst ongoing US sanctions against Huawei,which have restricted its access to advanced chip manufacturing technologies.

As of August 10, 2025, Huawei has not issued an official statement regarding the case.It remains unclear whether the defendants intend to appeal the court’s decision. The case is being closely watched by industry analysts as a potential precedent for future intellectual property disputes in the Chinese technology landscape.

The police statement underscored the commitment to upholding legal business conduct and fostering a competitive market surroundings.

KompasTekno reports the facts was compiled from Toms Hardware.

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