Align director detained in Taiwan over suspected Chinese chips in drones — Taipei Times

Prosecutors in Taichung, Taiwan, reported searches at Align Corp, while its director, Du Ta-sheng, was taken into custody without the right to communicate with the outside world, according to the office. He is suspected of using Chinese-made chips in drones supplied to Taiwan’s military for training and preparation, Taipei Times reports.

Suspicions over military contracts

According to prosecutors, the military dismantled the drones while checking their compliance with procurement terms and found chips marked CN inside. The contracts explicitly prohibited the use of products from China, Hong Kong and Macao.

Prosecutors said they found a similar problem in another batch of drones purchased by the army. Investigators searched locations linked to the company and summoned six people for questioning, including Du Ta-sheng and his wife.

According to investigators, the director allegedly used chips made by Chinese companies in at least two batches of drones under military contracts and instructed Align Corp to assemble the devices before their delivery to the army. The total value of these contracts exceeded NT$8 million. The suspects are also believed to have been involved in falsely declaring the country of origin of the goods.

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Review of other procurements

Taiwan’s Ministry of the Interior said that three government agencies had purchased a total of 32 drones manufactured by Align Corp or affiliated with it. The National Park Service and the Central Police University each bought one company-made drone last year.

This year, the National Immigration Agency held a tender to purchase 30 drones from Suyuan Technology Co for NT$2.75 million, or about US$84,700. Suyuan Technology planned to supply devices made by Align, but the delivery has not yet taken place.

The ministry said it would monitor compliance with the contractual ban on Chinese-made components and could seek compensation if violations are found. Taiwan’s government procurement standards require compliance with supply-chain requirements excluding Chinese components.