A South Korean chip executive imprisoned for industrial espionage denied building a replica chip factory in China with valuable Samsung Electronics information.
Choi Jinseog detailed his defense plan in a handwritten letter to Reuters, his first media appearance since his May 25 arrest. He denied the Xian plant charges.
The former Samsung executive was indicted last month for stealing classified knowledge to build a semiconductor plant 1.5 km (1 mile) from a Samsung (005930. KS) factory in Xian, China.
Choi is detained in Suwon, south of Seoul, where Samsung is headquartered. His counsel disputed all charges.
Choi said that Foxconn (2317. TW) would use the factory for early test manufacturing of DRAM memory chips, while Samsung’s Xian plant would make NAND flash chips.
DRAM process technology is more difficult than NAND flash chip fabrication, and some equipment differs.
“They use different equipment and the layout of (Samsung’s) NAND flash chip equipment is really of no use for us,” Choi wrote in the letter.
Reuters questioned several semiconductor industry specialists who weren’t engaged in the case and confirmed that NAND and DRAM production procedures and equipment varied, although they didn’t explain.
Samsung declined to comment, citing ongoing investigations. Foxconn and Samsung factory contractors were not charged for wrongdoing.
Foxconn, officially Hon Hai Precision Industry Co Ltd., told Reuters it was “aware of speculation” but wouldn’t comment on current investigations.
“We abide by laws and regulations governing jurisdictions we operate in,” Foxconn added.
