Yesterday, prosecutors from South Korea arrested and indicted a former executive of Samsung accused of stealing vital trade secrets of the company that he will use to build a copycat computer chip factory in China, news from the Associated Press reported.
Stealing vital trade secrets to build his own factory
The South Korean prosecutors identified the man as a 65-year-old ex-Samsung employee who stole the company’s factory blueprints and clean-room designs dated 2018 and 2019. Other personal information about the suspect are not revealed.
South Korea described the material he stole as “national core technology,” which is a category of technology that may potentially threaten national security and the economy if disclosed abroad.
Moreover, authorities also stated that the material he stole is worth at least $236 million to Samsung, news from the Manila Times said.
They also described the suspect as an “undisputed top domestic expert in semiconductor manufacturing” who had worked in the industry for several years.
They described him as a “top expert in semiconductor manufacturing” who had worked in the industry for decades.
The man had worked for Samsung for 18 years and held executive positions for a decade at SK Hynix. SK Hynix is also a notable chip maker in South Korea and one of the leaders in the memory chip market industry.
Later on, he also reportedly established chip manufacturing companies in China and Singapore with the help of Chinese and Taiwanese investors. More so, he even promised higher pay to hundreds of chip experts from Samsung and SK Hynix to lure them into his work.
Suwon’s district prosecutor’s office said he planned to use the materials he stole to build his own copycat chipmaking facility in Xian, a city in China. Samsung already has a chip factory in that city.
“It is a serious crime that can have a tremendous negative impact on our economic security by shaking the foundation of the domestic semiconductor industry at a time when competition for chip production is intensifying every day,” the prosecutors told news organizations yesterday. “The semiconductor industry accounted for 16.5 percent of South Korea’s total exports in 2022… and is a national security asset.”
Samsung has not yet released an official statement as of press time.
Amidst controversies in semiconductor manufacturing
This incident came amidst semiconductor manufacturing feuds and controversies, particularly between the United States and China.
Samsung is among the largest producers of chips and mobile phones in the world, and contributes greatly to the gross domestic product of South Korea.
Currently, a significant portion of its production is based in China. The East Asian country heavily relies on a steady supply of chips made by foreign companies for its huge industry in electronics manufacturing.
But, the United States implemented a series of export controls in 2022 to prevent China from obtaining the world’s most advanced chips the country may allegedly use to create cutting-edge weaponry and big technologies like artificial intelligence.
These sanctions have angered Beijing, the Chinese capital, and accused Washington of “technological terrorism.”
