Taiwan's economy ministry is backing the "non-red supply chain" push after prosecutors searched IC substrate maker Unimicron — bad news for Taiwanese exporters using loopholes to disguise Chinese-made goods.

• Prosecutors searched Unimicron over claims it relabeled China-made IC substrates as Taiwanese and over suspected insider trading.
• Officials say "origin washing" means shipping goods out of China, passing them through another country, then selling them to the US — which is illegal.
• Under Taiwan's rules, a product cannot change its origin label unless it is substantially reworked or gains at least 35% more value; for US-bound goods, US customs makes the final call.
• The ministry has run over 30 briefings since 2025 on origin rules and is tightening border checks with the finance ministry to stop fake transshipment through Taiwan.
• Mislabeling can bring fines up to NT$3 million, export bans on the products involved, and criminal referral.

Outlook: The case now sits with the courts, and Taiwan is likely to keep tightening origin checks as Washington presses harder on goods routed out of China.