China jails 14 former Huawei employees in major crackdown on tech IP theft
TOI World Desk | TIMESOFINDIA.COM | Aug 06, 2025, 21:17 IST
( Image credit : TIL Creatives )
Highlight of the story: In China, fourteen former Huawei employees faced sentencing for stealing chip technology. They used this technology to start a rival company, Zunpai. Zhang Kun, Zunpai's founder, allegedly encouraged the theft. A Shanghai court delivered jail sentences and financial penalties. The case highlights China's crackdown on corporate espionage. Huawei sued in August 2023, leading to arrests.
In a significant move against intellectual property (IP) theft, Chinese authorities have sentenced 14 former Huawei employees for stealing proprietary chip technology and using it to launch a rival semiconductor startup named Zunpai. The founder of Zunpai, Zhang Kun, a former researcher at Huawei’s chip division HiSilicon, allegedly enticed Huawei staff to join his new venture with lucrative salaries and stock options. However, he reportedly encouraged them to steal confidential information before resigning.
The Shanghai court has handed down jail sentences of up to six years and imposed financial penalties, although the full details of the verdict have not yet been made public. The case, reported by South China Morning Post and tom’sHARDWARE, marks one of China’s most high-profile crackdowns on corporate espionage in the tech sector.
Investigations revealed that at least 40 core technologies used by Zunpai closely mirrored those developed by Huawei, indicating substantial IP infringement. Following Huawei’s lawsuit in August 2023, Shanghai police arrested the 14 individuals in December of the same year. Authorities also froze assets worth approximately 95 million yuan (about $13.1 million) belonging to Zunpai.
While Huawei has yet to issue a public statement, the case has sparked widespread discussion within China about the risks of corporate espionage and the need for stricter enforcement of IP protection. Ironically, Huawei—often criticized globally for alleged IP violations—finds itself on the receiving end of IP theft this time.
The incident comes as Huawei ramps up its domestic R&D efforts, most notably through the opening of a sprawling 2,600-acre research and development facility in Shanghai, underscoring its intent to maintain technological leadership amid global scrutiny and trade restrictions.