Taiwanese prosecutors have raided Unimicron, a key supplier to Nvidia and Intel, over allegations that the company falsely labeled the origin of printed circuit boards, or PCBs. The Taoyuan District Prosecutors Office said the alleged conduct violates Taiwan’s Criminal Code provisions covering forged private documents and false labeling of goods. The raid targeted the company’s PCB department, and the general manager, identified as Wang, was released on bail of NT$15 million, roughly $473,000. A deputy general manager, identified as Wu, was released on NT$12 million, about $378,000. Three other individuals posted bail ranging from NT$300,000 to NT$5 million, while nine others were released without bail.
The investigation focuses on potential “origin washing,” where goods made in China are relabeled as made in Taiwan to gain preferential tariff treatment. Unimicron told the Taiwan stock exchange that it is fully cooperating with the probe and does not expect a material impact on its operations. The case carries a significant U.S. angle because U.S. Customs and Border Protection has applied an additional 40% tariff on goods determined to be transshipped through third countries to evade duties. That tariff has been in effect since August of last year and cannot be waived or mitigated by the agency.
The White House has designated 40 countries and territories as elevated risks for illegal transshipment, with Taiwan flagged as a key concern. Taipei has been running major crackdowns on the practice, and the speed of this raid - with names and bail amounts published within 24 hours - signals a strong push to show Washington that Taiwan polices origin labeling itself. The “Made in Taiwan” label is a trade asset whose value rests on distinguishing it from “Made in China,” and the crackdown reflects that priority.
The products involved appear to be conventional PCBs, not the high-end ABF substrates used for Intel’s EMIB-T platform or Nvidia’s advanced data center accelerators. Unimicron’s offshore manufacturing in China covers standard substrates, PCBs, HDI, and flexible boards, while its advanced CoWoS-related substrate capacity is based at its Yangmei factory in Taoyuan. If the case involves relabeling on individual products, the fallout may be limited to Taiwanese prosecution. But if China-made goods were transshipped through Taiwan to alter their origin before export to the U.S., that could trigger the 40% transshipment penalty.
Such a determination would also open the door to retroactive duty reassessments, with the financial burden falling on Unimicron’s American customers as importers of record. The situation remains under investigation, and prosecutors stated there was strong suspicion of violations related to forged private documents and false labeling. Unimicron’s cooperation with authorities suggests the company is seeking to minimize disruption, though the full scope of the alleged scheme has not been disclosed.
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