South Korea Indicts Ten Former Samsung Employees for Leaking 10nm-Class DRAM Tech to China
South Korean authorities have taken decisive action against a major industrial espionage case, indicting ten individuals for allegedly stealing and transferring Samsung's proprietary 10nm-class DRAM manufacturing technology to Chinese semiconductor firm ChangXin Memory Technologies (CXMT). The Seoul Central District Prosecutors' Office announced the indictments this week, marking a significant development in a case that has spanned several years and caused substantial economic damage.
The Technology Theft Operation
The case centers around Samsung's 10nm-class DRAM technology, which the company pioneered with a KRW 1.6 trillion investment and began mass-producing in February 2016. This technology was classified as both a national core technology and a trade secret under South Korean law. According to prosecutors, the theft enabled CXMT to manufacture 10nm-class DRAM chips starting in 2023, significantly accelerating the Chinese firm's technological development.
The operation began when CXMT, established in 2016 with investments from local governments and semiconductor design firms, recruited a former Samsung Electronics department head to lead its development team. In September of that year, this department head and several associates, including a former Samsung researcher, obtained Samsung's 18nm DRAM process technology through another former Samsung employee working at CXMT.
Investigators revealed that one former Samsung employee manually copied hundreds of steps of the 10nm-class DRAM technology before transferring it to CXMT. The conspirators established a shell company that frequently changed offices and even developed their own coded language to communicate secretly, anticipating potential travel bans or arrests.
Systematic Technology Transfer
Between 2018 and 2023, the stolen technology underwent a systematic transfer and adaptation process. The former Samsung department head and team members transferred the proprietary information to CXMT's development teams, who then modified the technology to suit Chinese manufacturing equipment. This adaptation allowed CXMT to develop and eventually produce DRAM chips based on Samsung's stolen intellectual property.
The economic impact of this theft has been substantial. Prosecutors estimate the damage to Samsung at approximately 5 trillion won, with broader damage to the South Korean economy reaching tens of trillions of won. Given that semiconductors account for 20.8% of South Korea's total exports, the case represents a significant threat to the nation's economic and technological security.
Legal Proceedings and National Implications
The ten individuals have been charged with violating both the Unfair Competition Prevention and Trade Secret Protection Act and the Act on Prevention of Divulgence and Protection of Industrial Technology. Five people, including former Samsung employees, have been indicted with detention, while five others, including members of CXMT's development team, face indictments without detention.
Prosecutors emphasized the seriousness of the case, stating that through direct investigation, they uncovered and punished not only domestic technology leaks but also development-related crimes carried out in China. They pledged to continue responding strictly to overseas illegal technology leaks that threaten the national economy and technological security.
Conclusion
This case highlights the intense competition and security challenges in the global semiconductor industry. As nations increasingly recognize advanced chip technology as critical to economic and national security, such industrial espionage cases are likely to face more aggressive prosecution. The indictment of ten individuals represents South Korea's commitment to protecting its technological advantages in a sector where it holds global leadership. The outcome of this case may set important precedents for how nations handle cross-border technology theft in an increasingly competitive technological landscape.