Former Huawei Employees Face Prison in Chip Technology Theft Case

Shanghai, china – A court in Shanghai is poised to deliver sentences in a high-profile case involving former Huawei employees accused of stealing chip technology secrets for a rival company, Zunpai. While specific sentencing details haven’t been released, sources indicate potential prison terms of up to six years and significant fines, as reported by KompasTekno, citing Toms Hardware on Monday, August 11, 2025.

The Rise and Fall of Zunpai

Zunpai, founded in 2021 by Zhang Kun, a former researcher at Huawei’s HiSilicon subsidiary, quickly became a focal point of suspicion. Zhang Kun departed Huawei in 2019, publicly stating his intention to develop WiFi chip technology.

Prior to Zunpai’s official launch, Zhang Kun aggressively recruited former colleagues from Huawei, offering substantially increased salaries and attractive stock options. However, prosecutors allege this recruitment drive was a purposeful strategy to infiltrate Huawei and extract confidential chip technology details before the employees formally left the company.

Huawei’s Inquiry and Legal Action

Huawei detected the alleged illicit activity in 2023. The company formally initiated legal proceedings in August of that year, culminating in the December arrest of 14 individuals by the Shanghai Police. The arrests targeted individuals believed to be involved in both the recruitment and the alleged theft of intellectual property.

Authorities promptly froze Zunpai’s assets,totaling 95 million yuan (approximately Rp 215 billion,or roughly $13.4 million USD based on current exchange rates). The investigation focused on the transfer of sensitive data related to Huawei’s chip designs, potentially impacting its competitive advantage in the telecommunications and technology sectors.

Read too: Uniquely photographing the city of Bangkok with Huawei Pura 80 Ultra

The Shanghai Police Department emphasized the case as a critical reminder of the importance of protecting technological secrets and fostering fair competition within the industry. The incident highlights the growing concerns surrounding industrial espionage and the protection of intellectual property in China’s rapidly evolving tech landscape.

As of today, Huawei has not issued an official statement regarding the court’s impending decision. It remains unclear whether the defendants intend to file appeals. The outcome of this case is expected to set a precedent for future investigations into intellectual property theft and corporate espionage in China.

Light a country with literacy, one book can open thousands of dreams. Through the word expedition to real,Kompas.com wants to bring thousands of books to remote parts of Indonesia. Help children read more, dreaming higher. Come on Donation Via We can!