Taiwan has charged two local managers for running a secret recruiting base for a Chinese semiconductor equipment maker, another sign that the chip talent war between Taipei and Beijing is turning into a legal fight.

• Prosecutors in Taoyuan charged two Taiwanese men, aged 40 and 45, with breaking the law that limits Chinese business activity in Taiwan.
• The pair allegedly ran an unregistered Taiwan office for Hefei-based Xinqi Microelectronics, a maker of exposure machines used to produce circuit boards and chip packaging.
• One rented the site and led engineering work; the other handled sales and helped hire local engineers with electronics and tech backgrounds.
• Taiwan treats poaching of chip-industry staff as a national security issue, not just a business dispute, because the sector is its main economic shield.

Outlook: Expect more prosecutions like this as Taiwan tightens enforcement against Chinese firms quietly setting up shop to hire away its chip engineers.