Key facts
- Two executives from Taiwanese drone supplier Jiin Ming Industry Co. were detained for allegedly using Chinese-made components in military drones.
- The executives, Chien Hao-ting and Chen Yang-cheng, are suspected of violating the National Security Act, submitting falsified business records, and aggravated fraud.
- Prosecutors seized evidence during raids on Jiin Ming's offices and those of its subsidiaries and suppliers.
- The Taoyuan District Court ordered the detention of Chien and Chen for two months, citing national security concerns and potential interference with the investigation.
- This is the second investigation into a Taiwanese drone supplier in two months over the alleged use of prohibited mainland components.
Two executives from Taiwanese drone supplier Jiin Ming Industry Co. have been detained and held incommunicado over allegations of using prohibited Chinese-made chips and camera lenses in drones supplied under military contracts. The Taoyuan District Prosecutors’ Office stated that the company allegedly breached procurement contracts by incorporating these components into drones delivered to the military.
Prosecutors raided Jiin Ming's headquarters in Taoyuan, along with its subsidiaries and suppliers, on October 8. Following questioning, Vice Chairman and President Chien Hao-ting and Business Manager Chen Yang-cheng were suspected of violating the National Security Act by knowingly supplying Chinese-made products under military procurement contracts. They are also suspected of submitting falsified business records and aggravated fraud.
The Taoyuan District Court ordered both men detained for two months from October 9, citing national security implications, the possibility of others being involved, Chien's inconsistent statements, and the risk of collusion or flight. The court also noted that the volume of transactions suggested a risk of repeat offenses. Other suspects were released without bail.
Jiin Ming, listed on the Taipei Exchange's over-the-counter market, confirmed Chien's detention and stated that Chairman Tsai Hsiang-feng has assumed his duties. The company asserted that its operations remain normal and pledged full cooperation with the investigation. This incident marks the second time in two months that a Taiwanese drone supplier has faced investigation for allegedly using prohibited mainland components, highlighting concerns about the integrity of the supply chain for Taiwan's indigenous drone program.