South Korean prosecutors have indicted 10 individuals for allegedly leaking advanced memory chip technology to Chinese chipmaker ChangXin Memory Technologies (CXMT), a move that authorities say accelerated China’s high-bandwidth memory (HBM) development, crucial for artificial intelligence applications.
The Seoul Central District Prosecutors’ Office reported that five of the accused, including a former Samsung Electronics executive and engineers, were charged and detained for violating South Korea’s industrial technology protection law. The remaining five were charged but released on bail.
Investigators allege that a former Samsung researcher, before joining CXMT, copied hundreds of proprietary DRAM manufacturing steps by hand. The detailed notes, which included equipment specifications, process sequences, and yield optimization techniques, were later used by CXMT to replicate Samsung’s production process. Additional DRAM technology was reportedly obtained from SK Hynix through a supplier, further accelerating CXMT’s capabilities.
The leaked information pertained to Samsung’s 10-nanometre DRAM processes, developed at a cost of 1.6 trillion won. At the time, Samsung was the only company to commercialize this technology. CXMT adapted the stolen data to its own equipment, reportedly achieving 10-nanometre DRAM production in 2023—the first by a Chinese firm.
Authorities stated that the unauthorized use of these technologies laid the foundation for CXMT’s HBM development, with estimated losses to South Korean companies like Samsung amounting to tens of trillions of won.
CXMT, which is planning a Shanghai stock market listing valued at $42 billion, recently unveiled its latest generation DRAM, DDR5, signaling a direct challenge to South Korea’s semiconductor leaders. Both Samsung Electronics and SK Hynix, as well as CXMT, declined to comment on the case.
This high-profile indictment underscores ongoing concerns over industrial espionage in the global semiconductor sector and the growing competition between South Korea and China in advanced memory technologies.
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