Samsung Executive Arrested for Smuggling Core Semiconductor Technology to China

A former Samsung Electronics executive and researcher have been arrested on charges of smuggling Samsung Electronics’ core semiconductor technology to China, with an estimated economic value of over 4 trillion won.

Core Technology Involved

The technology in question is Samsung Electronics’ core technology for all stages of the 20-nano DRAM memory semiconductor process.

Arrest and Charges

Former Samsung Electronics executive Mr. Choi and former chief researcher Mr. Oh were arrested on charges of fraudulently leaking and using this technology and were sent to the prosecution. Charges including the Prevention of Industrial Technology Leakage Act and the Prevention of Unfair Competition Act were applied to them.

Establishment of Chinese Company

According to the police investigation, Mr. Choi established a company in China in September 2020 with the aim of manufacturing 20-nano DRAM semiconductors, and Mr. Oh, a semiconductor engineer, joined him later. The Chinese local government provided capital to the company.

Development of Pilot Product

After establishing manufacturing facilities, they succeeded in developing a pilot product in one year and three months by using Samsung Electronics’ core semiconductor processing technology without permission.

Economic Value and Damage

The police estimated that the economic value of the semiconductor technology leaked to China was as much as 4.3 trillion won. The exact extent of the damage is difficult to estimate due to the economic effects.

Implications for Economic Security

This incident is serious as it has gone beyond the level of one or two domestic engineers moving to China, and key personnel related to semiconductors in Samsung Electronics established a local company and tried to produce in cooperation with the Chinese local government. This shakes the foundation of our country’s economic security in the midst of a global war for hegemony in semiconductor technology.

Investigation and Suspension of Operations

The company they ran in China was in the process of ramping up production after successfully developing DRAM, but operations were suspended due to the impact of this investigation. The police are continuing their investigation into related charges by also ordering executives and employees from domestic semiconductor companies who transferred to this company.