Introduction:
Huawei Wins Landmark IP Case as a Chinese court sentences a former executive to six years in prison for stealing Wi-Fi 6 chip designs.
On July 30, 2025, the Shanghai Pudong New Area People’s Court ruled in favor of Huawei in one of the most significant intellectual property (IP) theft cases in China’s semiconductor history.
Huawei Wins Landmark IP Case not only protects its core technologies but also sends a powerful message about the rising enforcement of IP rights in China’s tech sector.
The case centers on Zhang Kun, the founder of Zunpai Communication Technology and former HiSilicon executive, who was found guilty of misappropriating Huawei’s proprietary chip data.
Join Our WhatsApp News for updated information on semiconductors & AI
What Happened: Inside the Huawei Trade Secrets Theft
Zhang Kun previously held a senior position at HiSilicon, Huawei’s semiconductor design division. According to investigators, Zhang and several colleagues conspired to steal proprietary Wi-Fi 6 chip technologies from Huawei prior to their exit in 2021.
Authorities detailed how the team illegally accessed confidential chip design files, using screenshots and handwritten notes to extract technical specifications. This stolen data was allegedly used to develop copycat chips at Zunpai, the company Zhang established soon after his departure from Huawei.
A forensic audit revealed that at least 40 technical points in Zunpai’s designs showed over 90% overlap with Huawei’s confidential technology, meeting the legal definition of “substantial similarity” under Chinese trade secret laws.
techovedas.com/why-huawei-is-taking-legal-action-against-mediatek
The Raid and Arrest: Authorities Move in
In April 2023, police raided Zunpai’s headquarters in Nanjing, seizing servers containing Huawei’s proprietary files. The operation led to the arrest of 14 key team members, including Zhang and a key co-conspirator named Liu.
At the time of the raid, the infringing Wi-Fi 6 chips had not yet reached mass production, but prosecutors argued that the intent and technical overlap were severe enough to constitute a criminal offense.
https://en.wikipedia.org/wiki/Wi-Fi_6#:~:text
Court Verdict: Harsh Sentences and Industry Ban
The court concluded that Zhang Kun’s actions had “particularly severe consequences,” imposing:
- 6 years in prison
- RMB 3 million fine
- 5-year industry ban from working in semiconductor design
Co-defendant Liu and two other executives received 3–5 years in prison and fines ranging from RMB 500,000 to 2 million. Ten other staff members received shorter sentences or probation.
In addition, the court:
- Dissolved Zunpai Communication Technology
- Destroyed the infringing chip designs
- Froze nearly RMB 100 million in company assets
/techovedas.com/is-tsmc-supplying-chips-to-huawei-us-commerce-department-launches-investigation/
Zunpai’s Meteoric Rise—and Collapse
Founded in March 2021 and based in Nanjing, Zunpai positioned itself as an emerging Wi-Fi 6 chipmaker targeting routers, IoT gateways, and smart devices. In just months, it had attracted:
- RMB 100 million in angel funding
- Several hundred million yuan in pre-A round investment (2022)
Prominent investors included Gaorong Capital and Xiaomi’s investment arm.
Following the legal fallout, Xiaomi issued a public statement distancing itself, claiming no operational involvement or access to Zunpai’s technical details. It emphasized that its role was limited to financial investment.
Impact on Huawei: Financial and Strategic Losses
Huawei reported over RMB 100 million in losses, citing:
- Sunk R&D costs
- Delayed product roadmap
- Missed market opportunities
Notably, Huawei confirmed that its Wi-Fi 7 router launch was postponed due to the breach, allowing competitors to gain early advantage in a rapidly growing segment.
In an internal memo, Huawei described the court ruling as a “decisive victory” in its ongoing efforts to protect intellectual property in the chip sector.
techovedas.com/25-billion-push-huawei-strategic-play-to-bridge-the-chip-generation-gap
Legal and Industry Implications: A New Era of IP Enforcement
This case is being seen as a watershed moment in Chinese semiconductor law enforcement. Legal experts note that:
- It sets a clear precedent for defining “substantial similarity” in trade secrets
- It reflects China’s shift toward criminal prosecution in tech-related IP cases
- It reinforces the national importance of IP protection in strategic industries like semiconductors
“Technology theft is no longer a civil matter—it’s a criminal act with real consequences,” said an unnamed IP legal expert quoted in Chinese media.
Conclusion: A Warning to China’s Semiconductor Startups
China’s semiconductor self-reliance goals now come with stricter rules. The Zunpai-Huawei case shows that even domestic firms won’t be spared if they violate IP laws.
Startups must act responsibly when hiring ex-talent, handling data, or designing chips. Zunpai’s collapse is now a case study—and a cautionary tale.
For more of such news and views choose Techovedas! Your semiconductor Guide and Mate!
