Latest news with #Zunpai
Time of India
5 days ago
- Business
- Time of India
China cracks down: Huawei ex-employees get prison for stealing chip secrets to launch rival startup Zunpai
China has given punishment to 14 people who used to work at Huawei. They took secret chip information from Huawei and used it to start a new company called Zunpai, as reported by the South China Morning Post. This was seen as a serious act of cheating and breaking trust. A court in Shanghai has sentenced the group, but the official details of the punishment (like the final jail time and fines) haven't been published online yet. However, insiders say they will face financial penalties and up to six years in jail for their actions, as per the report by tom'sHARDWARE. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program ALSO READ: Trump's immigration push backfires and faces major backlash - ICE arrests plunge 20% in July by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Famous Celebrities With Unexpected Degrees Learn More Undo Zunpai founder lured Huawei staff with high pay and perks The founder of Zunpai, Zhang Kun, was once a researcher at Huawei's chip arm, HiSilicon. He quit in 2019 and later founded Zunpai in 2021. Zhang reportedly lured ex-Huawei staff with high salaries and attractive stock options—but allegedly asked them to steal secrets before quitting Huawei. Huawei found out about this and filed a lawsuit in August 2023, taking the issue to court. In December 2023, Shanghai police arrested the 14 ex-Huawei employees for stealing chip technology secrets. At the same time, the government froze 95 million yuan ($13.1 million) worth of Zunpai's assets, as mentioned in the report by tom'sHARDWARE. Live Events Police arrested 14 people and froze over $13 million in assets Investigators found that 40 technologies used by Zunpai were almost the same as Huawei's, showing clear evidence of intellectual property theft. The police said that China wants to protect companies that create new things in a fair way and stop the stealing of technology to keep business competition honest. ALSO READ: DOJ bombshell: Ghislaine Maxwell says Trump wasn't involved in Epstein drama — here's what she said This case is being talked about a lot in China. People are discussing how stealing company secrets can harm businesses and why it's important to keep those secrets safe. Even though Huawei is the one hurt in this case, the company has not said anything in public about the court decision or the arrests, as reports say. Usually on the receiving end of allegations of breaking rules and putting secret access in its devices this time Huawei had someone wrong them. Meanwhile, Huawei is also in the news for opening a huge new 2,600-acre R&D center in Shanghai, showing its growing focus on tech development, according to the report by tom'sHARDWARE. FAQs Q1. Why were Huawei ex-employees arrested in China? They were arrested for stealing Huawei's chip secrets and using them to start a rival company, Zunpai. Q2. What punishment did ex-Huawei staff get for stealing chip secrets? They face up to six years in jail and financial fines, though the court's full verdict is not public yet.
Yahoo
5 days ago
- Business
- Yahoo
14 ex-Huawei employees handed down prison sentences in China — accused face up to six years for taking 'chip-related business secrets' with them to form startup Zunpai
When you buy through links on our articles, Future and its syndication partners may earn a commission. China's courts take tech secret pilfering seriously, if one of its homegrown companies appears to be the victim. The South China Morning Post (SCMP) reports that a Shanghai court has sentenced 14 former Huawei employees, who were accused of taking a number of 'chip-related business secrets' with them, when they scooted off to form a new startup called Zunpai Communication Technology. Apparently, the precise punishment to be meted out upon the accused remains uncertain, as the verdict is yet to be published online. However, sources indicate that the ex-Huawei engineers will face financial penalties and up to six years in jail. The above case is reportedly a talking point in China. The topic of Intellectual property theft, its impacts on competitive industry, and on the people who work at these companies, have been thrust into the public psyche. However, the plaintiff in this case, Huawei, has yet to comment. Ex-Huawei engineers form Zunpai Zunpai was founded in 2021 by Zhang Kun, a former researcher at HiSilicon. Zhang had left Huawei in 2019, and in the interim, apparently headhunted talent from his old employer, with some success. It is alleged that Zhang managed to attract some of his old colleagues over to Zunpai with high salaries and attractive stock options. But there's no such thing as a free lunch, and these potential employees were also reportedly expected to copy secrets before they quit Huawei. Ex-Zunpai engineers form chain gang Huawei didn't have its head in the sand regarding this matter and, according to the SCMP, initiated legal proceedings in August 2023. Shortly after this, in December 2023, Shanghai police arrested 14 individuals for activities infringing upon chip technology secrets. At the same time, 95 million Chinese yuan ($13.1 million) worth of Zunpai's assets were frozen. Investigations by law enforcement indicated that 40 technologies in use by Zunpai were almost identical to those owned by Huawei / HiSilicon. A statement by the police, shared by the SCMP, talked about the importance of supporting the work of legitimate companies and supporting fair competition. Huawei was recently in the headlines for opening an impressive new 2,600-acre R&D center in Shanghai. However, it has been far from immune to accusations of shady business practices like sanctions busting, installing back doors in its devices, and – most pertinently today – poaching talent and acquiring stolen tech from rival tech companies. Follow Tom's Hardware on Google News to get our up-to-date news, analysis, and reviews in your feeds. Make sure to click the Follow button.
Yahoo
6 days ago
- Business
- Yahoo
Ex-Huawei semiconductor secret thieves sentenced to jail
When you buy through links on our articles, Future and its syndication partners may earn a commission. 14 ex-Huawei workers have been sentenced to jail over secret theft Former engineers went on to work at Wi-Fi chip startup Zunpai Huawei has been on both sides of the IP legal fence A Shanghai court has sentenced 14 former Huawei employees to jail for stealing chip-related business secrets, sending ripples across the industry not just in China but also globally. The employees worked for Zunpai Communication Technology – a startup founded be engineers from HiSilicon, a Huawei unit. The court issued jail terms of up to six years and imposed further financial penalties in a July 28 ruling which landed in Huawei's favor. Shanghai court jails former Huawei engineers over secret stealing After leaving Huawei in 2019, Zhang Kun, a former researcher at HiSilicon, founded Zunpai in 2021 and hired former coworkers. The startup was accused of using proprietary information by Huawei, despite the fact that the company developed Wi-Fi communication chips. According to court documents from August 2023, the Huawei subsidiary requested that the Shanghai Intellectual Property court freeze assets under Zunpai and its subsidiaries valued at 95 million yuan. The court's decision has not been made public online, and Huawei has not made any public remarks regarding the case. According to a South China Morning Post report, the engineers may still have grounds to challenge the decision. More broadly, it reflect a growing commitment in China toward protecting IP, with China's Supreme People's Procuratorate stating that 21,000 people were criminally prosecuted for IP crimes in 2024 alone, including a nine-year sentence for criminal copyright infringement of Lego bricks (via National Law Review). For Huawai, though, it represents a reversal of roles. In 2019, the Shenzhen tech giant was indicted on ten counts of stealing Western technology, attempting to steal secrets, wire fraud, and obstruction of justice. TechRadar Pro has contacted Huawei for a comment, but we did not receive an immediate response. You might also like This huge US router brand could be banned from operating in most of Europe due to patent litigation We've listed the best job sites and best recruitment platforms Check out the best productivity apps
