On Monday, South Korean prosecutors accused a former Samsung executive of stealing semiconductor data to create a replica chip plant in China.
The 65-year-old defendant, who worked for Korean chipmaker SK Hynix, was arrested for violating industrial technology protection laws and stealing trade secrets from 2018 to 2019 to build a copy of Samsung’s semiconductor plant 1.5 kilometers from Samsung’s chip factory in Xi’an, China.
Prosecutors claimed the ex-Samsung executive’s attempt to create the imitation chip plant failed after his unknown Taiwanese corporation backer canceled more than a $6 trillion (roughly 8 trillion won) investment. Instead, he got funding from Chinese and Taiwanese investors to develop Samsung-based semiconductor prototypes.
China-U.S. semiconductor tensions prompted the indictment. The 25-year semiconductor industry veteran defendant created two chip plants in China and Singapore and hired over 200 South Korean semiconductor workers from Samsung and SK Hynix. According to prosecutors, Samsung could lose $233 million (300 billion won) from stolen data.
Prosecutors said the business intended to copy a semiconductor plant, not just semiconductor technology.
“It is a serious crime that could deal a heavy blow to the foundation of the domestic semiconductor industry at a time of cut-throat competition for chip production,” the prosecutor’s office said. Six of the ex-Samsung official’s associates were indicted.