Samsung Execs Charged in Massive 10nm DRAM Trillion-Won Leak to China

The global race for semiconductor supremacy has taken a sharp turn into the courtroom following a massive security breach at Samsung. Authorities have indicted several executives for allegedly leaking sensitive 10nm DRAM technology, a move that threatens to shift the industry's balance of power.

As the chip war with China reaches a boiling point, this scandal highlights the lengths to which competitors may go to secure a digital edge.

Although the US is sparing no effort to restrict the flow of high-end processors and equipment into China, Beijing remains determined to bridge the performance divide between local hardware and imports from TSMC or Nvidia. Of course, a classic yet reliable tactic for closing such a distance is to entice a top-level official with a lucrative wage.

Legal Action Against Former Samsung Leaders

According to South Korean publication The Elec, several former Samsung leaders and staff members face charges for handing over 10nm DRAM secrets to Chinese interests.

Investigators from the Seoul Central District Prosecutors' Office have taken a current executive at China's Changxin Memory Technologies (CXMT) into custody. This person, who previously worked for Samsung Electronics, allegedly managed the creation of 10-nanometer DRAM hardware while at the Chinese firm. Along with this high-ranking figure, four other staff members from the same company were detained during the probe.

CXMT and the Rise of Chinese DRAM

CXMT reportedly hired key leaders and technicians from Samsung Electronics, who then purportedly moved private DRAM blueprints to the Chinese business. The word on the street is that this handover helped the nation manufacture its first homegrown memory chips on a large scale in 2023, using designs allegedly taken from Samsung without permission.

One instance involves a former Samsung Electronics scientist who allegedly handed over hundreds of pages of notes on 10-nanometer DRAM processes to CXMT upon joining the firm in 2016. Legal authorities suggest that the resulting economic loss for South Korean chipmakers might reach several billion dollars.

'CXMT, China's first and only DRAM semiconductor company in which the Chinese local government invested 2.6 trillion won, misused the world's best domestic semiconductor core technology throughout the entire development process,' the prosecution said.

Authorities declared that they had identified illegal actions spanning the entire period of CXMT's 10nm DRAM development in China. Legal teams clarified that their findings included: the hiring of vital Samsung Electronics staff by CXMT to plot the acquisition of 10nm DRAM designs; the disclosure of numerous manufacturing steps by a past Samsung Electronics specialist during his move to the firm; and the eventual high-volume output of China's premier memory chips in 2023 following the adjustment and testing of the stolen data.

A Multi-Trillion Won Blow to South Korea

It took Samsung Electronics five years and an investment of 1.6 trillion won (£0.00081 billion) to pioneer the global 10nm-class DRAM manufacturing method. State lawyers disclosed that Mr A and his associates joined CXMT via a shell corporation. These individuals have been prohibited from departing South Korea and were required to surrender their digital credentials during the arrests to facilitate upcoming inquiries.

A former lead scientist at Samsung Electronics, known as Mr B, handed over hundreds of pages of handwritten notes on the firm's 10nm DRAM methods upon joining CXMT in 2016. Legal investigators maintain that the Chinese company obtained this 10nm DRAM knowledge, including the files from Mr B, as a vital component of national infrastructure. Officials stressed that 'the leaked data represents the most crucial information regarding DRAM process technology.'

The individual overseeing CXMT's fabrication environment, referred to as Mr C, is alleged to have disclosed SK Hynix's vital state technology to one of its business associates. Legal authorities also concluded that Mr C acquired details regarding the DRAM manufacturing sequence through unlawful means.

Legal officials highlighted, 'CXMT secured world-class DRAM process technology, laying the foundation for the development of high-bandwidth memory (HBM).' They further noted that the resulting financial blow to South Korea's chip sector, specifically Samsung Electronics, is projected to amount to tens of trillions of won. Authorities also pledged to take rigorous action against offences that threaten the nation's wealth and technical safety, including the transfer of vital assets abroad.