A former Samsung executive has been arrested for allegedly stealing semiconductor technology to establish a company in China, the Seoul Metropolitan Police Agency’s Industrial Technology Security Investigation Unit announced on September 9. The individuals arrested are Choi, the CEO of Chinese semiconductor manufacturer Chengdu Gaozhen (CHJS), and Oh, the head of process design.

Choi, who previously served as an executive at Samsung Electronics and Hynix Semiconductor (now SK Hynix), is reported to have stolen key process technologies independently developed by Samsung Electronics for the production of 20-nanometer DRAM semiconductors. In September 2020, Choi established Chengdu Gaozhen in collaboration with a local Chinese government and recruited domestic semiconductor experts, including Oh, a former senior researcher at Samsung Electronics, to leak and illegally use Samsung Electronics’ core memory semiconductor technology.

Oh moved to Chengdu Gaozhen and worked as the head of process design, playing a crucial role in leaking Samsung Electronics’ core technology. By April 2022, Choi had produced basic development products to measure their functionality as actual semiconductors.

The police explained that the economic value of the leaked 20-nanometer process development technologies from Samsung Electronics amounts to 4.3 trillion won (approximately $3.3 billion). They are also investigating other employees who moved from domestic companies, including Samsung Electronics, to Chengdu Gaozhen to determine if there were additional technology leaks.

A police official stated, “This case has shaken the foundation of economic security by attempting to produce semiconductors with domestic technology through direct collaboration between a former executive of a domestic semiconductor company and a local Chinese government, leading to a potential weakening of national competitiveness.”