Taiwanese chipmaker supplier Unimicron is under criminal investigation for allegedly passing off Chinese-made IC substrates as Taiwanese, a warning shot for exporters caught between the US and China.

• Prosecutors searched the IC substrate maker over suspected relabeling of Chinese boards, faking the country of origin, and insider trading.
• Taiwan's economics ministry will not comment on the case but says building supply chains that avoid China is now the main trend.
• The ministry is pushing companies to check and trace where their parts really come from, so they do not run into trouble with local or foreign rules.
• Faking origin labels on exports can bring fines of up to NT$3 million, an export ban, and criminal charges.
• Taiwan is also working with tax authorities to stop goods from being routed through the island to disguise where they were made.

Outlook: Expect tighter origin checks on Taiwanese exports and more pressure on manufacturers to prove their products are not quietly Chinese-made.