HTC executives held over ‘stolen secrets’

Three executives at the phone maker HTC have been arrested on suspicion of leaking trade secrets, sending shares in the Taiwanese smartphone specialist plunging.

HTC had last month filed a complaint accusing its vice-president of product design, Thomas Chien, research and development director Wu Chien-Hung, and senior manager of design and innovation Justin Huang of sharing trade secrets.

The trio were also accused of making false commission fee claims worth about T$10m (£215,000), and were arrested on Friday. Chien and Chien-Hung remain in custody, while Huang was released on bail.

Reports in Taiwan suggested the three executives planned to use stolen new interface tech-nology to set up a mobile phone design company.

HTC, rocked by internal feuding and a string of executive exits, has seen its share of the smartphone market slump from about a quarter in 2008 to 5 per cent now. Its shares hit an eight-year low yesterday, down almost 6 per cent to T$147.50.