Taiwan’s National Security Bureau reports China is targeting the island’s semiconductor industry to acquire advanced technology and talent. Beijing intends to achieve semiconductor self-reliance and bypass U.S.-led international containment.

The security report claims China uses indirect methods including technology theft and luring high-tech talent. Beijing also seeks to illegally procure controlled goods to support its domestic industry.

Taiwan serves as the home to TSMC, the world’s largest contract chipmaker. The government maintains strict laws to prevent advanced technologies from reaching China and frequently dismantles illegal poaching networks.