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

It appears that South Korea is adopting a tough stance on the transfer of sensitive technology to rival countries. A recent judgment from a local district court underscores this approach by imposing a severe sentence on a former Samsung employee who leaked proprietary chip information to CXMT.

China’s CXMT, widely regarded as a major player in the domestic memory manufacturing scene, seems to have gained a significant advantage in developing its DRAM technology through questionable means. According to a report from Sedaily, a South Korean Central District Court has found a former Samsung team manager guilty of sharing trade secrets with CXMT. This act is believed to have spurred the Chinese company’s progress in DRAM technology. The court made the following statement:

“A large part of the indictment confirms that the information regarding Samsung Electronics’ 18nm DRAM process, a crucial national technology, was unlawfully obtained, disclosed, and utilized. Given the enormous financial and temporal investment Samsung Electronics made in developing and mass-producing 18nm DRAM products, it’s plausible that the harm suffered by Samsung Electronics is substantial.” – via Sedaily

Reports indicate that the Samsung employee shared critical insights about the company’s 18nm process with CXMT. This act of espionage brought one of South Korea’s vital semiconductor processes into the realm of Chinese control. Samsung has poured extensive resources, both monetary and time, into the development of mature processes like the 18nm, which are considered revolutionary within the industry. Consequently, the exposure of this technology to China has escalated into a significant national security concern for South Korea.

Recently, we highlighted that CXMT is on a trajectory to challenge Samsung’s dominance in the memory sector. There are whispers of DDR5 technology development at CXMT, in addition to their existing offerings in the domestic market. With motherboard manufacturers like MSI beginning to endorse CXMT modules, the Chinese firm is asserting its influence, suggesting it won’t be long before it stands toe-to-toe with top-tier memory manufacturers.

Did this breach provide CXMT with a critical foothold in the memory market? While no one knows for sure, this situation undeniably represents a major setback for Samsung. The severity of the sentence underscores the gravity of such industrial espionage, reflecting its seriousness not only in South Korea but across the globe as well.