- South Korean prosecutors have charged 10 people, including a former Samsung executive, for allegedly leaking advanced DRAM technology to Chinese chipmaker ChangXin Memory Technologies (CXMT).
- Prosecutors say the leaked semiconductor process helped CXMT achieve production of 10-nanometre DRAM, bolstering its position in high-bandwidth memory critical for AI computing.
What happened: South Korea takes legal action over semiconductor leak
South Korea’s legal authorities have taken the unusual step of charging 10 individuals in connection with the alleged theft and transfer of advanced semiconductor manufacturing technology to ChangXin Memory Technologies, a Chinese memory chip manufacturer. Prosecutors described the case as one of the most serious industrial technology leak investigations in recent years, underscoring the strategic value of cutting-edge chip processes.
The Seoul Central District Prosecutors’ Office announced that five of the 10 suspects, including a former executive and engineers from Samsung Electronics, are in custody on suspicion of violating South Korea’s industrial technology protection law. The other five have been charged but released on bail. Prosecutors said the case revolves around detailed proprietary information on 10-nanometre DRAM manufacturing processes that was illegally transferred to CXMT.
According to the indictment, a former Samsung researcher copied hundreds of steps of the company’s advanced DRAM process by hand before leaving for a role at CXMT. The handwritten notes included equipment specifications, sequencing procedures and yield-optimisation techniques, which prosecutors allege were then used to reconstruct Samsung’s manufacturing flow at CXMT facilities.
Prosecutors also said the investigation uncovered additional DRAM technology from SK Hynix that was obtained by CXMT through a supplier, accelerating its ability to produce cutting-edge memory chips. CXMT, which is planning a Shanghai initial public offering valued at about $42 billion, recently launched new DDR5 DRAM chips that challenge South Korean rivals.
Samsung Electronics, SK Hynix and CXMT declined to comment on the charges.
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Why it’s important
The case highlights escalating concerns about industrial espionage and protection of intellectual property in the global semiconductor industry. Advanced memory technologies like 10-nanometre DRAM and high-bandwidth memory (HBM) are critical for artificial intelligence, high-performance computing and data centres. South Korea’s semiconductor sector represents a major share of global supply and economic output, so alleged leaks of this nature have both economic and national-security implications.
For South Korea, protecting home-grown semiconductor innovations has become a policy priority amid intense competition from Chinese firms backed by state investment. The charges come as governments worldwide consider tougher protections and export controls to avoid the loss of strategic technology. At the same time, the growth of firms like CXMT — aided by allegations of leaked technology — underscores how closely linked intellectual property, geopolitics and the global chip supply chain have become.
