Reportedly, a previous senior executive of Samsung Electronics Mr. A has been arrested. He will be going stand trial for his attempt to copy Samsung Electronics’ semiconductor plant in its entirety in China.
The Defense Industry and Industrial Technology Crime Investigation Division of the Suwon District Prosecutor’s Office charged the ex-executive, named Mr. A. The charges have been made for violating the Industrial Technology Protection Act. And also for Unfair Competition Prevention Act on June 12. Apart from this, his five employees at the Chinese semiconductor maker and an employee of a Samsung Electronics subcontractor. Those, who were found to smuggle out the blueprints were also prosecuted on the same charges.
Mr. A is liable for illegally using Samsung Electronics’ trade secrets. This comprises Basic Engineering Data (BED) with respect to the semiconductor plant, process, and design.
Talking about BED then it’s a technology that helps to create an optimal environment without contamination in the space where semiconductor making takes place. While the process layout is the drawing along with the information on the arrangement. Also the area of the eight core processes for semiconductor production. Alternatively, these technologies are semiconductor process technologies for developing DRAM and NAND flash.
Luckily, the plant did not build as the electronics manufacturer in Taiwan failed to deliver on its commitment investment of 8 trillion won to Mr. A. On the other hand, it has been reported that Mr. A received an investment of 460 billion won from Chengdu, China. It is claimed that he has developed semiconductor prototype products that use Samsung Electronics’ semiconductor technology.
The prosecutors estimated that Samsung Electronics suffered a minimum of 300 billion won (US$234 million) in damages due to this technology leakage. A prosecution official said, “We have cracked down on the attempt to replicate the entire semiconductor plant, not just the leakage of semiconductor technology,” and also said, “It is a serious crime that shakes the foundation of the domestic semiconductor industry in a time when the competition for semiconductor production is fierce.”
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