Taiwan prosecutors indict Align's owner and his wife over Chinese chips in drones

Prosecutors in Taichung on Friday indicted Tu, the owner of drone maker Align Corp., and his wife Huang, the company's vice president, on charges of supplying Taiwan's military with drones that contained Chinese-made chips. They are seeking prison terms of at least five years for each.

According to the Taichung District Prosecutors Office, Tu knew the contracts banned Chinese products and parts but used Chinese chips anyway, and gave false certificates of origin and warranties saying the drones were designed and made in Taiwan. The chips were found when the drones were inspected on delivery. Taiwan's military academy found Beijing T31-series chips in its training drones, and the Army Logistics Command found chips marked China in drones built to drop explosives.

Prosecutors said Tu admitted that Chinese components were used and that he had told employees not to talk about it. The couple are charged under the National Security Act and with forgery and fraud. Align has won military contracts to supply training drones to the military academy and the Army Logistics Command, and remote-controlled helicopters to the Navy.