Two ex-Samsung executives arrested for allegedly stealing chip know-how to construct manufacturing facility in China

What simply occurred? By hook or criminal, China is set to advance its chip-making capabilities regardless of Washington’s greatest efforts to restrict its technological innovation. This race for dominance has made the semiconductor trade a hotbed of commercial espionage exercise. The arrest of two ex-Samsung executives reveals simply how elaborate these thefts have turn into.

Two former Samsung Electronics executives have been arrested on fees of industrial espionage by South Korean authorities. The arrests are notably stunning as a result of the pair allegedly participated in an elaborate scheme to copy a complete chipmaking manufacturing facility in China.

The 2 suspects, recognized solely by their surnames Choi and Oh, are accused of stealing semiconductor applied sciences valued at $3.2 billion from Samsung. They allegedly collaborated with Chinese language officers to ascertain a three way partnership referred to as Chengdu Gaozhen that was to construct a manufacturing facility utilizing Samsung’s superior chip manufacturing capabilities.

Choi, a 66-year-old former Samsung government, is alleged to have recruited South Korean semiconductor consultants in addition to facilitated the leak of the proprietary reminiscence applied sciences. Oh, a former senior researcher at Samsung, joined Chengdu Gaozhen because the chief plant designer, the place he reportedly performed a vital function within the alleged know-how theft.

The know-how they had been after was Samsung’s 20-nanometer DRAM (Dynamic Random Entry Reminiscence). The suspects stole the blueprints for this superior reminiscence chip and likewise managed to develop primary merchandise as early as April 2022, in keeping with the police accounts.

Because the investigation continues, authorities are probing whether or not different former Samsung workers could have stolen mental property after becoming a member of Chengdu Gaozhen.

South Korean authorities have described the incident as a critical nationwide safety breach, noting that it harmed Samsung and likewise weakened the nation’s competitiveness within the ongoing international chip battle.

These arrests come amid escalating tensions between China and the US over semiconductor know-how. In the meantime, South Korea finds itself having to stability its function as a key ally to Washington, which seeks to restrict Beijing’s technological ambitions whereas sustaining financial ties with China.

This case mirrors the same incident wherein an worker of a South Korean tech firm was arrested for stealing commerce secrets and techniques. Final Could, a former SK hynix worker was arrested at a South Korean airport for printing 3,000 pages of semiconductor course of knowledge earlier than leaving the corporate. Prosecutors declare she meant to ship these paperwork to Huawei, however the Chinese language nationwide has denied all fees.