Kingston Electronic accused of relabeling Chinese-made PCBs as 'Made in Taiwan'; GM posted bail of NT$15 million

Taiwanese authorities are investigating Kingston Electronic, a leading manufacturer of IC substrates, for allegedly engaging in "country of origin" fraud. The company is accused of relabeling printed circuit boards (PCBs) manufactured in its Chinese facilities as 'Made in Taiwan' to mislead consumers and gain an unfair advantage.

Prosecutors from the Taoyuan District Prosecutor's Office, along with investigators from the Ministry of Justice's Investigation Bureau, executed search warrants at Kingston Electronic's headquarters and its Hejiang plant in Zhongli District. Fourteen defendants, including high-ranking executives, were summoned for questioning.

Following an overnight interrogation, the PCB business unit's general manager was granted bail at NT$15 million (approximately $470,000 USD). Other executives, including a deputy general manager and a plant manager, also received substantial bail amounts, while some employees were released. The investigation aims to uncover the full extent of the alleged scheme and determine the legal ramifications.

Kingston Electronic has stated that it is cooperating with the investigation and that the issue primarily concerns "origin labeling" under the Fair Trade Act. The company has pledged to issue further statements pending official clarification from the prosecutor's office.