Former Samsung Electronics Executive Arrested for Stealing Core Process Technology to Establish Semiconductor Company in China

COMPANY / Reporter Kim Jisun / 2024-09-11 03:32:53

(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Jisun] Former Samsung Electronics Executive Arrested for Stealing Core Process Technology to Establish Semiconductor Company in China

Former executives, including one who stole core process technology independently developed by Samsung Electronics to establish a semiconductor company in China, have been handed over to prosecutors while under arrest.

The Industrial Technology Security Investigation Division of the Seoul Metropolitan Police Agency announced on the 10th that they had arrested and transferred Choi (66), the CEO of Chinese semiconductor manufacturer Chengdu Gaojin (CHJS), and Oh (60), the head of process design, to the prosecution.

Choi is a former executive of Samsung Electronics and Hynix Semiconductor (now SK Hynix). In September 2020, he established a company in partnership with a local Chinese government. He is accused of illegally acquiring and using Samsung Electronics’ core memory semiconductor technology, hiring a significant number of semiconductor experts, including Oh, a former senior researcher at Samsung Electronics (in violation of the Industrial Technology Protection Act and the Unfair Competition Prevention Act).

According to police investigations, Choi targeted the production of 20-nanometer DRAM semiconductors by stealing Samsung's proprietary core technology developed at each stage of the process. Based on this, the company produced a prototype in April 2022, capable of functioning as a semiconductor.

Police report that Oh played a key role by leaking Samsung’s core technology before joining Chengdu Gaojin as head of process design. The economic value of Samsung’s stolen 18-nanometer and 20-nanometer process technology is estimated at approximately KRW 4.3 trillion (around USD 3.2 billion).

Authorities are continuing to investigate whether additional technology was leaked.

 

 

Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)

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