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Shock Arrest: Chinese Wafer Fab IT Engineer Detained in Italy at U.S. Request

On July 5, Chinese IT engineer Zewei Xu, an employee of Shanghai-based chip foundry ASMC (Advanced Semiconductor Manufacturing Corporation), was arrested at Milan's Malpensa Airport by Italian authorities while beginning a planned vacation with his wife. The arrest was carried out at the request of the United States, citing allegations of cyberattacks and COVID-19 vaccine data theft—claims that Xu's defense team strongly refutes as baseless and inconsistent.

The incident has drawn immediate comparisons to the high-profile arrest of Huawei CFO Meng Wanzhou in 2018, fueling concerns about politicized cross-border law enforcement and rising tech tensions between the U.S. and China.

According to U.S. authorities, Xu allegedly participated in cyber activities targeting American universities and companies. However, his lawyer stated that the indictment lacks solid evidence, with vague timelines, unclear connections, and unsupported claims. Xu's employer, ASMC, emphasized that he is a long-standing technical employee with no involvement in any of the alleged activities. The company also reaffirmed that its business—centered on power semiconductor and analog IC manufacturing—is fully compliant and unrelated to the allegations.

ASMC, a key domestic chipmaker in China focused on specialty process technologies, plays an important role in the nation's semiconductor ecosystem. Industry observers and Chinese officials have raised concerns that the U.S. may be using cybersecurity as a pretext to suppress China's wafer fabrication sector by targeting individual employees.

Following the arrest, Xu's wife contacted Chinese authorities, who have since lodged formal concerns with both Washington and Rome, urging that Xu's legal rights be respected and cautioning against the politicization of legal processes.

The case has ignited widespread public debate. Chinese media and commentators have labeled Xu as a “second Meng Wanzhou,” suggesting that his detention may reflect deeper strategic motives by the U.S. to curb China's semiconductor advancements.

As of now, Xu remains in custody while legal proceedings unfold. The outcome could have broader implications for international tech cooperation and the boundaries of extraterritorial enforcement in the semiconductor industry.

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