South Korea accuses ex-Samsung executive of stealing technology to build China chip factory
- The defendant is accused of illegally acquiring data from Samsung Electronics to build a factory in the Chinese city of Xian between 2018 and 2019
- He allegedly tried to build the factory 1.5km away from Samsung’s chip manufacturing facility in Xian after setting up his own semiconductor company
The defendant, who also formerly worked at SK Hynix as a vice-president, is accused of illegally acquiring Samsung data to build a factory in the northwestern Chinese city of Xian between 2018 and 2019, the Suwon District Prosecutors’ Office said in a statement.
The trial date was yet to be confirmed by the local court where the indictment has been filed.
The defendant, arrested last month, worked a combined 28 years at the South Korean chip makers, prosecutors said. The officials did not identify the accused.
The defendant was not immediately able for comment.
The former Samsung executive allegedly tried to build the factory 1.5km (1 mile) away from Samsung’s chip manufacturing facility in Xian after setting up a semiconductor company, prosecutors said.
The attempt to build the new plant using Samsung data, however, ended in failure due to funding issues, South Korea’s Yonhap news agency said.
Prosecutors said they have also indicted six other people for their involvement in the alleged crime, including an inspection company employee who is accused of leaking the architectural plan of Samsung’s semiconductor factory.
Prosecutors said they estimated the theft of the data to have inflicted at least 30 billion won (US$23 million) worth of losses to Samsung Electronics.
“It’s a grave crime that could deal a heavy blow to our economic security by shaking the foundation of the domestic chip industry at a time of intensifying competition in chip manufacturing,” the prosecutors’ office said.
Samsung Electronics did not immediately respond to a request for comment. SK Hynix declined to comment.
South Korea’s Samsung and SK Hynix, the world’s top two makers of memory chips, have invested billions of dollars in chip factories in China.
