Investing.com - South Korean prosecutors have indicted a previous Samsung Electronics Co Ltd (KS:005930) executive on charges of stealing the company's proprietary technology to establish a competing chip factory in China. The individual, who once served as a vice president at SK Hynix, allegedly obtained confidential Samsung information between 2018 and 2019 with the intention of building the facility in Xian, according to an announcement from the Suwon District Prosecutors' Office.
A trial date has yet to be set by the local court where the indictment was filed. The defendant was arrested last month after working for South Korean semiconductor manufacturers for over two decades; however, their identity remains undisclosed.
It is claimed that this former executive intended to construct their plant just one mile away from Samsung's existing manufacturing site in Xian after founding a separate semiconductor firm. Despite these efforts, financial constraints ultimately led to an unsuccessful outcome when attempting to create this new establishment using stolen data.
In addition, six other individuals were indicted due to their involvement in this case – including an employee from an inspection company accused of leaking architectural plans belonging to Samsung’s semiconductor production facility.
Prosecutors estimate that these actions resulted in losses exceeding $23 million for Samsung Electronics. They emphasized that such criminal activity threatens economic security and undermines domestic industries during times of increased global competition within chip manufacturing sectors.
Samsung Electronics did not immediately comment on this matter while SK Hynix refrained from providing any input as well. This incident occurs amidst South Korea’s commitment to reinforcing its support within the nation's semiconductor industry; President Yoon Suk Yeol recently characterized competition among businesses as “an all-out war” given ongoing tensions between China and America over technological advancements.
Major memory chip producers like South Korea-based Samsung and SK Hynix have invested billions into constructing factories throughout China.