Former Samsung Official Accused of Stealing Technology to Build Chip Factory in China

Liputan6.com, Jakarta – District prosecutors in Suwon, South Korea, have indicted a former Samsung Electronics executive for allegedly stealing the company’s technology to build a dummy chip factory in China.

The accused, who was not named, previously served as vice president of SK Hynix, which is also a chip maker in Korea.

Former Samsung officials are claimed to have stolen information in 2018 and 2019, resulting in losses for Samsung of USD 230 million or around Rp. 3 trillion, as quoted from EngadgetTuesday (13/6/2023).

This incident is evidence of a statement by South Korean President Yoon Suk Yeol, who recently said that the chip manufacturing industry was in a state of “all-out war”.

The defendant allegedly planned to build a semiconductor factory in Xi’an, China. He is said to have hired 200 employees from SK Hynix and Samsung to obtain trade secrets, as well as partnering with a Taiwanese electronics manufacturing company.

The cooperation promises USD 6.2 billion to build a new semiconductor factory. Even though the partnership failed, the defendant got around USD 358 million or IDR 5 trillion worth from Chinese investors, which he used to build a prototype factory in Chengdu, China.

According to the prosecutor’s statement, the construction of the factory also used stolen information from the Samsung company. The prosecutor’s office also stated that this matter is a felony.

“This case can pose a threat to our economic security by shaking the foundations of the domestic chip industry, when competition for chip manufacture is getting tougher,” said the prosecutor’s office.

Elon Musk’s Neuralink company has created a chip that can be connected to the human brain.