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LONDON DAILY ARCHIVE

Former Samsung Executive Charged with Stealing $236 Million in Company Secrets to Set Up Copycat Chip Factory in China

A former Samsung executive has been charged with stealing company secrets worth $236 million, including factory blueprints and clean-room designs, to set up a copycat chip factory in China.

13 June 2023 · 12:49 UTC

The suspect, who is in detention pending trial, is accused of targeting information classified as a "national core technology" in South Korea.

The theft would have had a significant impact on Samsung's economic security and competitiveness in the semiconductor industry, which is a national security asset.

Six other people have been charged over suspected involvement in the theft.

The case highlights the intensity of the competition for chip production between the US and China.

The US has placed curbs on the export of high-tech chips to China, which has infuriated Beijing.

China has accused the US of "technological terrorism" and has told operators of "critical information infrastructure" to stop buying products from US chip giant Micron.

South Korea is caught in the middle and must balance its relationship with the US as its security ally and its influence from Beijing.

A professor warns that Samsung Electronics should pay more attention to technology and information security as China is trying to catch up.