Former Samsung Electronics executive accused of stealing secrets for China chip factory

A former executive at South Korea's Samsung Electronics, who hasn't been identified yet, was indicted on Monday (June 12) over claims and suspicion that he stole company technology for a copycat chip factory in China. The prosecutors said that the person is also accused of jeopardising national economic security.

South Korea is a chipmaking hub, but globally, the battle to produce more and more is raging. The chip industry competition was recently described by President Yoon Suk Yeol as an "all-out war", with massive pressure from the geopolitical and economic rivalry between the United States and China.

In a statement, the Suwon District Prosecutors' Office said that the defendant is accused of illegally acquiring Samsung data to build a rival factory only 1.5 kilometres away from a Samsung chip manufacturing facility in Xian, China.

Add WION as a Preferred Source

The prosecutors mentioned that the executive also formerly worked at SK Hynix as a vice president and further estimated that the theft of data had caused at least $233 million worth of losses for Samsung Electronics.

The prosecutor's office said, "It's a grave crime that could deal a heavy blow to our economic security by shaking the foundation of the domestic chip industry at a time of intensifying competition in chip manufacturing."

As reported by the news agency Reuters, a prosecutor said that the defendant was arrested last month and is denying the allegations,addingthat the suspect worked a combined 28 years at the South Korean chipmaker.

The news agency's report also mentioned a prosecutor as saying that attempt to build the new plant using Samsung data between 2018 and 2019 ended in failure due to funding issues.

Watch|NASA scientist admits that the Moon 'might already have life on it'

Prosecutors said they had indicted six other people for their suspected involvement, including an inspection company employee accused of leaking the architectural plan of Samsung's semiconductor factory.

A report by GIZMOCHINA mentioned that both Samsung Electronics and SK Hynix are the world's top two memory chip manufacturers and have invested heavily in chip factories in China. The report also mentions that these companies rely on US technology and equipment, and approximately 40 per cent of South Korea's chip exports are directed to China.

(With inputs from agencies)

WATCH WION LIVE HERE

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.