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Tech war: Korean probe of tech leak to China underscores semiconductor supply chain tensions

  • The suspect sent trade secrets involving chemical mechanical polishing technology to a Chinese company, according to prosecutors
  • China is the largest importer of chips made by Korean companies like Samsung and SK Hynix, which have wafer fabs on the mainland

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Why you can trust SCMP
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South Korea’s deputy prime minister for social affairs Park Soon-ae (left) visits a semiconductor laboratory at Chungnam National University, July 25, 2022.  Photo: EPA-EFE/Yonhap
Ann Caoin Shanghai

A court case involving leakage of intellectual property (IP) from a South Korean company to China has shed light on growing tensions in the semiconductor supply chain between the two countries.

The Korean Intellectual Property Office and the Daejeon District Prosecutors’ Office last week announced that six people, who were not identified, will stand trial for leaking core chip manufacturing technology to China. The Chinese parties involved in the case were also not identified.

According to a report by South Korean newspaper The Dong-A Ilbo, citing information from Korean prosecutors, the key suspect (identified only as “A”) was accused of stealing confidential data from his Korean employer. He uploaded the data, which included trade secrets involving chemical mechanical polishing (CMP) technology, to a Chinese company.

Other suspects include A’s former colleague, as well as former and current employees and researchers from Korean semiconductor conglomerates and their partners, according to a report by South Korean television network Korean Broadcasting System.

There were no Chinese media reports about the case.

CMP is an important final step in the manufacture of silicon wafers, where a polishing pad and slurry are used to remove irregularities on the surface of the wafer. China has a “low rate of local production” in CMP technology, according to a report by Chinese research institute Reportrc.com.

California-based Applied Materials, one of the world’s biggest suppliers of semiconductor manufacturing equipment – including CMP wafer polishers – derived nearly one third of its 2022 revenue from the mainland Chinese market.
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