Former Samsung executives have reportedly been arrested in South Korea for stealing around $3 billion worth of DRAM manufacturing technology.
Samsung Executives Are Now Involved In An Attempt of DRAM "Technology Transfer," Poses Serious Issues For South Korea
Multiple South Korean outlets report (via Tech+ Japan) that Samsung's former executives have been involved in the act of stealing the company's DRAM equipment with the intention of setting up a semiconductor manufacturing unit in China. The two former executives under the age bracket of 60 were intercepted by the South Korean police and were charged under the "Industrial Technology Protection Act and Unfair Competition Prevention Act." The development is pretty surprising, but with China being surrounded by global sanctions, such incidents aren't entirely new for the markets.
Diving a bit into the details of the event, the arrested individuals are reportedly the CEO and Chief Engineer of a Chinese semiconductor firm. Both of them previously worked in high-tier posts at Samsung. It is said that the individuals were in communication with local Chinese governments and were involved in the act of illegal "technology transfer," with China providing them with the necessary economic resources for leaking Samsung's DRAM technology to the nation.
It is reportedly that the individuals provided China with more than 600 key documents related to Samsung's DRAM manufacturing process and were also involved in recruiting Korean engineers to work in China, that too with higher financial incentives. The established semiconductor firm in China built its production lines similar to Samsung and started prototyping in April 2022, but they haven't transitioned to mass-production stages yet. South Korean police believe that more than 30 of Samsung's employees moved to China to work with the semiconductor firm, and they are working on identifying the individuals.
The issue of technology transfer, especially in nations like China, is a serious one and concerning for global powers, given that it not only results in an anti-competitive practice but also creates complexities for nations. Just recently, we reported on how an ex-Samsung engineer leaked information about the Korean giant's OLED technology worth $25 million, but the DRAM case is much larger since the proposed amount of technology worth is around 4.3 trillion won or $3 billion.
If the individuals are convicted, they may face up to 20 years in prison or a fine of up to 2 billion won since this is a serious crime in South Korea.
