After Moving to ChangXin Memory Technologies, Used Samsung Electronics' "National Core Technology"
Estimated Loss in Samsung Electronics Sales Reaches 5 Trillion Won
Prosecutors: "Tens of Trillions in Damages Expected"
Former Samsung Electronics employees who moved to Chinese companies and are accused of unlawfully using national core technologies to develop products have been brought to trial.
On October 1, the Information Technology Crime Investigation Division of the Seoul Central District Prosecutors' Office (headed by Prosecutor Kim Yunyong) indicted three individuals, including a former Samsung Electronics executive and two researchers, on charges of violating the Act on Prevention of Divulgence and Protection of Industrial Technology and the Unfair Competition Prevention Act.
According to prosecutors, after joining ChangXin Memory Technologies (CXMT) in China, the individuals are accused of illegally using Samsung Electronics' 18-nanometer DRAM process, which is classified as a national core technology, to develop DRAM products. CXMT is the first DRAM semiconductor company in China, established with an investment of 2.6 trillion won from a local Chinese government. The relevant national core technology is the latest process technology for 10-nanometer-class DRAM, developed by Samsung Electronics with an investment of 1.6 trillion won and recognized as the world's best. Prosecutors explained that this core information contains hundreds of steps in the DRAM manufacturing process, documented in detail.
Prosecutors discovered signs of leakage of Samsung Electronics' national core technology and launched a direct investigation. In January of last year, they indicted the first head of development at CXMT, who was formerly a department head at Samsung Electronics, and in May, they indicted a CXMT employee who was formerly a Samsung Electronics researcher, both on charges of unlawfully acquiring national core technology.
The investigation revealed that CXMT, immediately after its establishment, recruited these two former Samsung Electronics employees and formulated a DRAM development plan based on securing national core technology and recruiting key personnel. The first head of development at CXMT and others were found to have illegally obtained DRAM process national core technology through former Samsung Electronics employees.
Prosecutors believe that the three individuals indicted on this day received these leaked materials, disassembled actual Samsung Electronics products to verify the leaked information, and conducted manufacturing tests to develop DRAM. In 2023, CXMT became the first company in China and the fourth in the world to successfully mass-produce 18-nanometer DRAM. It was revealed that each of them received salaries ranging from 1.5 billion to 3 billion won over four to six years from CXMT.
Due to this incident, Samsung Electronics' estimated revenue loss last year alone was 5 trillion won, and future damages are expected to reach at least several tens of trillions of won, making this the largest technology leakage case in history.
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