Xinxing Electronics factory searched over suspected illegal relabeling of Chinese-made boards and insider trading

Taiwanese investigators have searched the Zhongli Hejiang factory of Xinxing Electronics, a prominent manufacturer of IC substrates, as part of an investigation into alleged illegal activities. The company, considered one of the top three ABF substrate suppliers alongside Nan Ya PCB and Kinsus Interconnect Technology, is suspected of relabeling Chinese-made components as Taiwanese products.

Sources indicate that the investigation centers on allegations that Xinxing Electronics transshipped printed circuit boards manufactured in China to Taiwan. These boards were allegedly then relabeled to obscure their origin before being sold, potentially circumventing trade regulations or gaining unfair market advantages.

In addition to the suspected product misrepresentation, the investigation is also reportedly examining potential insider trading activities. Authorities are looking into whether any individuals within the company may have exploited non-public information related to these operations for personal financial gain. The search of the factory is a key step in gathering evidence for both aspects of the probe.