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Two former senior Samsung employees have been arrested in South Korea on charges of illegally transferring DRAM technology to a Chinese semiconductor firm. Authorities allege the pair recruited Korean engineers and handed over hundreds of confidential documents to accelerate China's chip production.
Samsung Technology Allegedly Transferred to China
Several South Korean news sites have reported (via Tech+ Japan) that former Samsung executives stole DRAM equipment from the company and planned to use it to start a semiconductor factory in China.
The South Korean police apprehended the two ex-executives who were less than 60 years old and brought charges against them under the "Industrial Technology Protection Act and Unfair Competition Prevention Act."
Despite the fact that this new event is rather startling, the markets are accustomed to dealing with situations like this because China is encircled by worldwide sanctions.
Chinese Semiconductor Company Executives Detained
The head honcho and top engineer of a Chinese semiconductor company are among those who have been detained, according to reports. Prior to it, they were both employed at Samsung in senior positions.
According to WCCFTECH, the persons in question allegedly engaged in unlawful "technology transfer," communicating with local Chinese governments and receiving financial backing from China to steal Samsung's DRAM technology.
Korean Engineers Recruited with Lucrative Offers
Reportedly, the persons in question recruited Korean engineers to work in China, offering them higher salaries in exchange for their services, and they allegedly supplied China with over 600 critical documents pertaining to Samsung's DRAM production process.
Although they began prototyping in April 2022, the well-established Chinese semiconductor company has not yet moved on to mass-production, despite having constructed production lines comparable to Samsung's.
Authorities Seek More Samsung Employees Involved in DRAM Theft
The authorities in South Korea are trying to determine who among Samsung's thirty or so employees may have emigrated to China to take jobs with a semiconductor company.
