Ex-Samsung execs arrested for alleged technology theft for China

South Korean police arrested two former Samsung Electronics Co. officials on suspicion of stealing proprietary technology worth over 4.3 trillion won ($3.2 billion) to build a copycat chipmaking plant in China.

The Seoul Metropolitan Police Agency on Tuesday accused the pair of collaborating with Chinese officials to establish a semiconductor facility. One of the executives, identified as a 66-year-old surnamed Choi, recruited South Korean chip experts and leaked Samsung’s memory technologies through a joint venture.

The police said the executives aimed to replicate Samsung’s fabrication plant in China. This case mirrors a similar incident reported in 2023, amid escalating tensions between Beijing and Washington over sanctions targeting China’s chip sector.

As a leading producer of memory chips, South Korea is a key ally of the United States in efforts to contain China’s technological ambitions. The police described the alleged actions as a serious security violation perpetrated through the Chinese joint venture, Chengdu Gaozhen.

The executives collaborated with Chinese officials to produce 20-nanometer DRAM chips last year, which not only harmed Samsung but also weakened South Korea’s competitiveness in the global chip industry.

Police successfully halted the Chinese venture’s operation but are still investigating further technology leaks. Samsung declined to comment on the matter.

Attribution: Bloomberg