China -Samsung
Seoul — South Korean authorities have arrested ten former employees of Samsung Electronics on charges of industrial espionage, accusing them of leaking advanced semiconductor technology to a Chinese chipmaker, according to officials and local media reports.
Prosecutors allege that the suspects, including former executives and senior researchers, unlawfully transferred key details of Samsung’s 10-nanometer–class dynamic random-access memory (DRAM) technology to China-based ChangXin Memory Technologies (CXMT). The technology, developed by Samsung over five years at an estimated cost of 1.6 trillion won (about $1.08 billion), is considered a core asset in the global semiconductor industry.
Investigators say the leaked information enabled CXMT to mass-produce China’s first 10nm-class DRAM chips in 2023, significantly narrowing the technology gap with leading global memory makers. Authorities further allege that the breakthrough allowed CXMT to move into high-bandwidth memory (HBM), a critical component for artificial intelligence and high-performance computing applications.
The arrests come amid heightened scrutiny in South Korea over technology leaks, particularly in strategically sensitive industries such as semiconductors, batteries, and displays. The semiconductor sector is regarded as vital to the country’s economic and national security interests.
Samsung Electronics has not publicly commented on the specific case but has repeatedly stated that it maintains a zero-tolerance policy toward technology leaks and cooperates fully with law enforcement in investigations involving trade secrets.
If convicted, the suspects could face severe penalties under South Korea’s Industrial Technology Protection Act, which allows for lengthy prison sentences and substantial fines for leaking core national technologies abroad.
The case underscores intensifying competition in the global memory chip market, as well as growing concerns in Seoul about the transfer of advanced know-how to overseas rivals, particularly amid broader geopolitical tensions surrounding the semiconductor supply chain.