The prosecution has uncovered the full extent of a case involving the leak of Samsung Electronics’ state-designated core technology for 10-nanometer-class DRAM, which was developed for the first time in the world by Samsung. The investigation revealed that ChangXin Memory Technologies (CXMT), China’s first DRAM semiconductor company, illicitly obtained and used Samsung’s core technology, ultimately succeeding in mass production. The technology in question is the latest 10-nanometer-class DRAM process technology, which Samsung developed first in the world with an investment of 1.6 trillion won.
The Information Technology Crime Investigation Department of the Seoul Central District Prosecutors’ Office (headed by Prosecutor Kim Yunyong) announced on December 23 that it had indicted and detained five key development personnel, including Mr. A, a former Samsung Electronics executive who oversaw development at CXMT, on charges of violating the Act on Prevention of Divulgence and Protection of Industrial Technology (leakage of state-designated core technology abroad, etc.). An additional five individuals, including heads of each development part, were indicted without detention.
According to the prosecution, CXMT, which was established with an investment of 2.6 trillion won from a local Chinese government and is China’s first DRAM semiconductor company, illicitly used the best domestic semiconductor core technology throughout the entire development process. As a result, CXMT became the first in China (and the fourth in the world) to succeed in mass-producing 10-nanometer-class DRAM.
Immediately after its establishment in May 2016, CXMT recruited core personnel from Samsung Electronics, which at the time was the first and only company in the world to achieve mass production of 10-nanometer-class DRAM, and established a plan to secure the technology. Subsequently, Mr. B, a Samsung Electronics researcher who is now the subject of an Interpol Red Notice, moved to CXMT and copied and leaked information on hundreds of process steps. During the development process, CXMT also illicitly obtained state-designated core technology from SK Hynix, continuously modifying and verifying it to suit Chinese facilities. As a result, CXMT succeeded in mass-producing DRAM in China for the first time in 2023.
The prosecution stated that as a result of this incident, CXMT secured world-class DRAM process technology, laying the groundwork for the development of high-bandwidth memory (HBM). In contrast, the damages to Samsung Electronics and others are estimated to be at least several tens of trillions of won.
Based on changes in global market share, Samsung Electronics’ sales decrease last year alone is estimated at around 5 trillion won. Considering the size of the domestic semiconductor-related industry (20.8% of total exports), the damage to the national economy in the future is expected to reach at least several tens of trillions of won.
Prosecutors Indict Former Samsung Executive and Others for Leaking ‘K-Semiconductor’ Technology to China’s CXMT
The prosecution has uncovered the full extent of a case involving the leak of Samsung Electronics’ state-designated core technology for 10-nanometer-c...