A group of Ex-Samsung Employees Have Been Arrested For Allegedly Selling Confidential Information To a Chinese Memory Manufacturer

Two former employees of Samsung have been arrested for their alleged involvement in selling trade secrets of the South Korean tech giant to a rival memory maker in China. It is believed that the leak caused a loss of at least 2.3 trillion won ($1.8 billion) in damages, which could increase if Samsung loses market share in the DRAM segment.

Korean authorities apprehended Kim and Bang, two ex-Samsung employees, just before the weekend. Kim, a retired manager since 2016, faces accusations of divulging trade secrets—crucial fabrication and deposition techniques used in Samsung’s 16nm chips. He reportedly received millions of dollars in annual salary from his new employer, ChangXin Memory Technologies (CXMT), in exchange for the information.

Deposition is a crucial technology in semiconductor manufacturing, and chemical vapor deposition (CVD) has replaced physical vapor deposition (PVD) as the most important.

At present, Samsung holds around 40 percent of the global DRAM market, and the transfer of trade secrets has significantly narrowed the technology gap between Samsung and the Chinese company.

The National Intelligence Service (NIS) of South Korea has stated that this leak is one of more than 30 such events that have occurred in South Korea since 2018, which is four times more than the previous five-year period.

Upon returning to Korea on a Friday in October 2023, Kim and Bang faced arrest for violating the Act on the Prevention and Protection of Industrial Technology Leakage.

Prosecutors are stepping up the investigation to uncover potential accomplices and explore similar leaks within Samsung’s broader fabrication processes.
The publication has also suggested harsher penalties for those convicted of such crimes.

Established in 2016, ChangXin Memory Technologies (CXMT) quickly expanded, employing over 3,000 individuals by 2019. In 2022, the National Defense Authorization Act prohibited the US government from using or purchasing memory from CXMT.

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