Taiwan is cracking down on a major chip-packaging supplier accused of passing off China-made circuit boards as Taiwanese, which is bad news for Unimicron and its customers.

• Prosecutors say Unimicron shipped circuit boards made in China back to Taiwan and stamped them as local products.
• Investigators raided the company's headquarters and a plant, questioning 14 executives and staff; five were released on bail, one at a steep amount.
• The charges involve document forgery and false labeling of where goods come from.
• Unimicron matters far beyond Taiwan — it is a top global supplier of the substrates used in AI and high-performance computing chips.
• The company says it is cooperating and calls the matter a dispute over product origins.

Outlook: Prosecutors plan to widen the probe, so more executives and possibly other firms could be pulled in.