Former Samsung Employee Receives Record-breaking Sentence for Leaking 18nm Chip Secrets to China

It seems the South Korean government is taking a firm stance against those leaking technological secrets to competing nations. A recent case involved a former Samsung employee who has been hit with a tough sentence for sharing chip secrets with CXMT.

China’s CXMT, considered a top player in domestic memory manufacturing, appears to have advanced its DRAM process development under somewhat dubious circumstances. According to a report by Sedaily, the Central District Court in South Korea has handed down a sentence to Samsung’s ex-team manager for leaking trade secrets to CXMT. This act allegedly gave the Chinese firm a boost in developing its DRAM technology. In the court’s judgment, they stated:

“A significant portion of the indictment involves Samsung Electronics unlawfully obtaining information on the 18nm DRAM process—an essential national technology—resulting in its disclosure, leakage, and utilization.”

The court highlighted that the financial impact on Samsung, given the resources poured into developing and producing 18nm DRAM products, could be enormous.

According to reports, the former Samsung employee shared key files about the company’s 18nm process with CXMT. This single act of avarice apparently handed over a pivotal semiconductor process to China, a situation South Korea views as a national security threat due to the monumental investment Samsung has made in these mature processes. Chips like the 18nm are considered industry breakthroughs, making their unauthorized release to China deeply concerning.

Moreover, it’s been reported that CXMT is making strides to compete with Samsung in the memory market. They are rumored to be developing DDR5 technology and have already introduced products to local markets. Brands such as MSI have begun supporting CXMT’s modules, indicating the company’s growing presence in the market. It’s likely just a matter of time before CXMT stands toe-to-toe with the industry’s leading memory manufacturers.

Did this leak provide CXMT with the head start it needed in memory markets? While it’s still uncertain, this incident has certainly been a major setback for Samsung. The punishment reflects the severity of such offenses, not only in South Korea but around the globe.