Former Samsung executives arrested for stealing $3 billion worth of DRAM technology for ‘illegal’ semiconductor company in China

Former Samsung executives have reportedly been arrested in South Korea for stealing DRAM manufacturing technology worth around $3 billion.

Samsung executives are now involved in an attempted “technology transfer” for DRAM that is causing serious problems for South Korea

Several South Korean media outlets are reporting (via Tech+ Japan) that former Samsung executives were involved in stealing the company's DRAM equipment to set up a semiconductor manufacturing plant in China. The two former executives, both under the age of 60, were intercepted by South Korean police and charged under the “Industrial Technology Protection Act and the Unfair Competition Prevention Act.” The development is quite surprising, but with China surrounded by global sanctions, such incidents are nothing entirely new to the markets.

Digging a little deeper into the details of the incident, it is found that those arrested are reportedly the CEO and chief engineer of a Chinese semiconductor company, both of whom previously held high-ranking positions at Samsung. It is said that the individuals were in contact with local Chinese governments and were involved in the act of illegal “technology transfer,” with China providing them with the necessary economic resources to leak Samsung's DRAM technology into the country.

The individuals reportedly 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, who also received higher financial incentives. The established semiconductor company in China set up its production lines similarly to Samsung and began prototype development in April 2022, but has not yet moved to mass production. South Korean police believe that more than 30 Samsung employees moved to China to work at the semiconductor company and are working to identify the individuals.

The issue of technology transfer, especially in countries like China, is a serious and worrying issue for global powers as it not only leads to anti-competitive practices but also creates complexities for countries. Just recently, we reported how a former Samsung engineer leaked information about the Korean giant's OLED technology worth $25 million, but the DRAM case is much bigger as the proposed technology value is around 4.3 trillion won or $3 billion.

If convicted, the individuals face up to 20 years in prison or a fine of up to 2 billion won, as it is a serious crime in South Korea.