Samsung Technology Leak Fuels China’s First DRAM Success
Former Samsung Electronics executives and researchers who moved to a Chinese semiconductor company and illegally used Samsung’s core national technology to develop China’s first 18-nanometer DRAM semiconductor have been indicted and detained for trial.
On Oct. 1, the Information Technology Crime Investigation Department of the Seoul Central District Prosecutors’ Office (led by Chief Prosecutor Kim Yun-yong) indicted and detained three individuals, including former Samsung Electronics executive Yang, and former researchers Shin and Kwon, on charges of violating the Industrial Technology Protection Act and the Unfair Competition Prevention Act.
Yang and others are accused of moving from Samsung Electronics to CXMT (Changxin Memory Technologies), a Chinese DRAM semiconductor company, where they worked as core members of the Phase 2 Development Team. They allegedly misused Samsung Electronics’ illegally leaked 18-nanometer DRAM process core national technology to complete the development.
CXMT is China’s first DRAM semiconductor company, established with a 2.6 trillion won investment from the Chinese local government. The leaked technology is Samsung Electronics’ latest 10-nanometer class DRAM process technology, which the company developed as a world first with a 1.6 trillion won investment.
Previously, prosecutors detected signs of leakage of Samsung Electronics’ core national technology and, through direct investigation, indicted and detained two former Samsung Electronics employees: former department head Kim and former researcher Jeon, who participated in CXMT’s Phase 1 Development Team.
After further investigation into the development process, prosecutors discovered that Kim, who moved to CXMT and became the head of the Phase 1 Development Team, had illegally obtained DRAM process core national technology materials from former Samsung Electronics employee A.
Subsequently, it was found that Yang, who oversaw the entire development as the head of CXMT’s Phase 2 Development Team, Shin, who supervised process development, and Kwon, who managed practical affairs, received leaked materials from the Phase 1 Development Team. Based on these materials, they succeeded in mass-producing 18-nanometer DRAM, becoming the first in China and the fourth in the world.
The investigation revealed that they continued the work of the Phase 1 Development Team, verifying the leaked materials by reverse-engineering actual Samsung Electronics products and conducting manufacturing tests based on this information to complete the development.
It was confirmed that Shin and others received high salaries of 1.5 billion to 3 billion won from CXMT for 4-6 years, which is 3-5 times their Samsung Electronics salary, in exchange for participating in the development.
The estimated decrease in Samsung Electronics’ sales due to this incident is 5 trillion won based on last year’s figures. The future damage is expected to grow to at least tens of trillions of won.
Employee A, who is under investigation for copying hundreds of process information steps from Samsung Electronics into a notebook, is currently on Interpol’s Red Notice list.
The prosecution stated, “We will continue to respond strictly to technology leakage crimes that threaten victim companies and the national economy.”