New taipei: The New Taipei District Prosecutors Office has indicted Luxshare Precision Industry Co. Chairwoman and CEO Grace Wang, along with three others, for violations of Taiwan's Act Governing Relations between the People of the Taiwan Area and the Mainland Area. The charges stem from actions related to a 2018 acquisition involving a Hong Kong subsidiary and a Taiwanese company.
According to Focus Taiwan, prosecutors allege that Wang, the co-founder of the China-based electronics manufacturer, utilized a Hong Kong subsidiary to acquire a division of Liteon Technology Co., a Taiwanese firm. This acquisition was purportedly an attempt to register it as an overseas Chinese-invested company. The Investment Commission of Taiwan's Ministry of Economic Affairs (MOEA) rejected the registration because the funding included Chinese capital.
After the registration was denied, prosecutors claim that Wang instructed her associates to establish a new company in Taiwan to maintain operations. This included changing managers and the company's name. Despite these changes, the firm continued to employ software and hardware specialists and transferred research to its branch in Guangzhou, which prosecutors argue is a violation of cross-strait law.
Prosecutors have also revealed that Wang funneled approximately US$65.57 million (around NT$1.99 billion) through affiliates from 2018 to 2023 to support business operations and employee salaries. The New Taipei District Prosecutors Office collaborated with the Ministry of Justice's Investigation Bureau and has issued a warrant for Wang's arrest.
According to Forbes, Wang is a Hong Kong citizen residing in Shenzhen, China. She is recognized as the seventh richest self-made woman in the world, with a net worth estimated at around US$13.7 billion. Prosecutors have cautioned that Chinese enterprises frequently use overseas investment fronts to establish operations in Taiwan and identified Luxshare as a significant competitor to Taiwanese companies within Apple's supply chain.