Overview

• The Shanghai Third Intermediate People’s Court on July 28 sentenced 14 former Huawei engineers to prison terms of up to six years and imposed financial penalties.
• The convicted individuals had formed Zunpai Communication Technology in March 2021 to develop Wi-Fi communication chips after leaving Huawei’s HiSilicon unit in 2019.
• In August 2023, Huawei’s Shanghai HiSilicon subsidiary secured a court order to freeze 95 million yuan in assets held by Zunpai and its affiliates.
• The full verdict has not been published online and it remains unclear whether the engineers will appeal the ruling.
• Industry analysts say the case underscores Beijing’s tougher enforcement of trade-secret laws and highlights challenges for innovation in China’s semiconductor sector.