Ex-Samsung Employee Receives Record Sentence for Leaking 18nm Chip Secrets to China

It appears that South Korea is taking a firm stance against “technology transfer” to rival nations. A former Samsung employee has been handed a stringent sentence after being found guilty of leaking chip secrets to China’s memory manufacturer, CXMT.

In an intriguing development, CXMT, known as a leading player in China’s domestic memory market, allegedly advanced its DRAM process development through questionable means. According to Sedaily, South Korea’s Central District Court ruled against a former Samsung manager, convicting him of revealing confidential Samsung trade secrets to CXMT. This leak reportedly propelled CXMT’s progress in developing DRAM technology. The court highlighted:

“A substantial part of the indictment stems from Samsung Electronics unlawfully acquiring information about the 18nm DRAM process, a key national technology, and subsequently disclosing, leaking, and utilizing this information.”

“The investment Samsung Electronics made to develop and mass-produce the 18nm DRAM products comes at a staggering cost. It’s not hard to estimate that the financial harm inflicted on Samsung will be immense.” – via Sedaily

It is alleged that this ex-employee handed over crucial files related to Samsung’s 18nm technology to CXMT. This act of individual greed essentially allowed China access to one of South Korea’s primary semiconductor processes. Samsung has poured significant investments into such mature processes, contributing not only financial resources but also substantial time. With innovations like the 18nm chip marking a significant industry breakthrough, the technology slipping to China has escalated to a national security issue for South Korea.

Recently, there have been reports about CXMT’s ambitions to compete with Samsung in the memory field. It’s rumored that the company is venturing into DDR5 technology and has already rolled out DDR5 products within local markets. Tech giants like MSI have begun supporting CXMT modules, signaling the company’s growing dominance in the field. It may not be long before CXMT stands toe-to-toe with the leading memory manufacturers globally.

Did this leak provide the jumpstart CXMT needed in the competitive memory markets? While there’s no concrete answer yet, it’s undeniably significant for Samsung. The stern sentence underscores the gravity of such offenses, recognized not only in South Korea but across other regions too.