South Korea has filed charges against a former Samsung executive accused of stealing company secrets valued at hundreds of millions of dollars to establish a chip factory in China. The dispute over semiconductors has become a contentious issue between the United States and China, as they fiercely compete for access to chip-making technology and supplies.
Furthermore, the accused individual, a 65-year-old former Samsung employee, allegedly stole the company’s factory blueprints and clean-room designs between 2018 and 2019. Despite his attempts, the suspect failed to set up a copycat production facility in Xian, China, where Samsung already operates a chip factory.
At the same time, prosecutors have described the suspect as a highly skilled expert in semiconductor manufacturing with decades of industry experience. The stolen information is estimated to be worth at least 300 billion won ($236 million) to Samsung.
The semiconductor industry plays a crucial role in South Korea’s economy, accounting for 16.5% of its total exports in 2022 and being considered a national security asset.
Additionally, six other individuals who collaborated with the former executive have also been charged in connection with the theft. Samsung declined to comment on the matter. As one of the world’s leading producers of chips and smartphones, Samsung Electronics has a substantial portion of its production based in China, which heavily relies on foreign firms for chip supply in its massive electronics manufacturing industry.
The intensifying competition between the US and China in the semiconductor sector puts South Korea in a challenging position, as it needs to navigate its relationship with both countries. Analysts suggest that Samsung Electronics should prioritize technology and information security, as China seeks to catch up in the industry.
