huawei hisilicon hit by trade secret theft: 14 ex-employees convicted
shanghai, Wednesday, 27 August 2025.
a shanghai court upheld the guilty verdict for 14 former huawei hisilicon employees. they were involved in a trade secret theft benefiting zunpai. the stolen chip technology was valued at over 300 million yuan. this case highlights china’s commitment to protecting intellectual property within its crucial semiconductor sector. the ruling may influence investor confidence in firms like tsmc, which support chinese tech companies.
Details of the hiSilicon case
The case, overseen by the Supreme People’s Procuratorate, involved 14 former employees of Huawei’s HiSilicon unit [1][6]. These individuals illegally obtained technical data to benefit Zunpai, a company founded by a former HiSilicon department head [1][6]. The stolen information, related to Wi-Fi chip technology, was valued at approximately 317 million yuan [1][6]. The defendants did not appeal the initial verdict issued on july 28, making it final [1][6].
How the theft unfolded
Zhang, the former head of HiSilicon’s radio frequency chip development, established Zunpai after leaving Huawei [1][6]. He then recruited other HiSilicon employees with promises of high salaries and career advancement [1][6]. These recruits acquired confidential information through methods such as screenshots, transcriptions, and WeChat transfers [1][6]. This information was then used in Zunpai’s chip development efforts [1][6]. The Shanghai Municipal People’s Procuratorate Third Branch initiated legal proceedings against the 14 individuals on april 10, 2024 [1][6].
Penalties and legal response
The Shanghai Third Intermediate People’s Court found all 14 defendants guilty of infringing trade secrets [1][6]. Zhang received a six-year prison sentence and a 3 million yuan fine [1][6]. Other executives received sentences ranging from three to five years and fines ranging from 1.2 million to 1.5 million yuan [1][6]. The remaining nine individuals received suspended sentences and fines ranging from 200,000 to 1 million yuan [1][6]. The court adopted the prosecution’s recommendations [1][6].
Impact on investors and the semiconductor market
The verdict reinforces intellectual property protection in china’s semiconductor industry, a key concern for investors [1][6]. This case may also impact companies like tsmc that manufacture chips for huawei and other chinese firms [1]. Heightened scrutiny of technology transfer and intellectual property rights could lead to more cautious investment strategies [3]. Conversely, the ruling could boost investor confidence in chinese firms committed to innovation and ip protection [1][6].
Wider implications and trade tensions
Amid ongoing trade tensions, particularly with the united states, this case underscores china’s intent to safeguard its technological advancements [3]. Potential tariffs and export restrictions threatened by figures like donald trump could further disrupt the semiconductor supply chain [3]. This ruling may signal a more assertive stance on intellectual property rights, potentially influencing future trade negotiations and investment decisions in the semiconductor sector [3].