Ex-Samsung exec charged with stealing chip tech for China factory

South Korea has charged a former Samsung executive accused of stealing company secrets worth hundreds of millions of dollars to set up a copycat chip factory in China, prosecutors told AFP on Tuesday.

Semiconductors have become a flashpoint issue between the United States and China, which are locked in a fierce battle over access to chip-making technology and supplies.

South Korean prosecutors said the 65-year-old former Samsung employee allegedly stole the company’s factory blueprints and clean-room designs from 2018 and 2019.

The Suwon district prosecutor’s office said the suspect unsuccessfully tried to set up a copycat production facility in the Chinese city of Xian — where Samsung already has a chip factory.

The man, who has not been identified and is in detention pending trial, stole material that is classified by South Korea as a “national core technology” — a category of tech that could potentially harm national security and the economy if disclosed overseas.

Prosecutors said he had been in custody for some time and was formally charged on Monday.

They described him as a “top expert in semiconductor manufacturing”, who had worked in the industry for decades.

South Korean authorities said the information allegedly targeted in the theft would have been worth at least 300 billion won ($236 million) to Samsung.

“It is a serious crime that can have a tremendous negative impact on our economic security by shaking the foundation of the domestic semiconductor industry at a time when competition for chip production is intensifying every day,” prosecutors said in a statement on Monday.

“The semiconductor industry accounted for 16.5 percent of South Korea’s total exports in 2022… and is a national security asset.”

Six other people who worked with the executive have been charged over suspected involvement in the theft.

Samsung declined to comment when contacted by AFP on Tuesday.

– Chip war –

Samsung Electronics is one of the world’s largest producers of chips and smartphones, and its parent group’s turnover is equivalent to about one-fifth of South Korea’s GDP.

Like many of the world’s biggest chip makers, a large portion of its production is based in China.

Chips are the lifeblood of the modern global economy, and China — the world’s second-largest economy — relies on a steady supply of chips made by foreign firms for its huge electronics manufacturing industry.

The United States imposed a series of export controls last year to prevent China from acquiring the most advanced chips that could be used in cutting-edge weapons and frontier tech such as artificial intelligence.

The Netherlands and Japan followed this year with restrictions of their own, without naming China.

But the curbs have infuriated Beijing, which has accused Washington of “technological terrorism”.

China last month said US chip giant Micron had failed a national security review, and told operators of “critical information infrastructure” to stop buying its products.

Analysts have described that move as retaliation for the US semiconductor curbs.

“Amid intensifying semiconductor competition between the US and China, South Korea is in a difficult situation as it has to side with its security ally US while it obviously cannot ignore Beijing and its influence,” Kim Dae-jong, a professor of business administration at Sejong University, told AFP.

“Samsung Electronics should pay more attention to technology and information security. China is trying to catch up.”

AM Live

AM Live is NTV's morning current affairs show that sets the agenda for the day with insightful panels every weekday.

BNX

Business Redefined

Business Redefined is Kenya’s premier thought leadership platform for unpacking matters regarding economic and finance policy as well demystifying complex developments in the region’s capital markets.

Comedies

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Documentaries

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Entertainment

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Full Episodes

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Gumzo La Sato

Gumzo La Sato is a live social issues show that aims to create awareness about issues affecting the larger society. The discussions range from Parenting, Marital bliss and struggles, Oppression, violence, and all matters of the Heart.

Health Diary

Health Diary is a weekly show that highlights different types of diseases/conditions and seeks ways to prevent, treat/manage them. The show debunks this through real life stories and also feature specialists in different fields, to offer medical advice on the same.

Letter To My Younger Self

Letter To My Younger Self is a podcast where guests get to write a letter to their younger self, from which Maxine formulates questions to ask them during the hour-long show.

Mazao Talks

Mazao looks at agriculture and agribusiness

Nation Reports

Nation Reports is a weekly podcast offers an opportunity for listeners to interact with various reporters and journey with them as they unravel the biggest most emotive stories.

One Health Lens Podcast

Discussing health matters and human stories from Kenya and across Africa. We talk big picture from people to policy, ecosystems, and everything in between. Follow us on LinkedIn: https://www.linkedin.com/company/onehealthlens

Paradise Lost

Paradise Lost peeks through the story of Louis Otieno, the times, and everything in between.

Podcasts

Podcasts

Primetime

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Speaking of GEN Z

Speaking of Gen Z brings you entertaining but meaningful conversations about a generation that is trying to navigate through adulthood. Join hosts Michelle, Jackie and Esther as they unravel all things Gen Z.

Sport On

Sport-On is a 30-minute sports magazine show on NTV and 3 hours on NATION FM. The show seeks to give the sports “fanatics” and “funatics” comprehensive and in-depth coverage of sports both locally and internationally.

Tech-over

The extent of technological growth is beyond mere acknowledgment; it has seamlessly integrated into our daily existence. A few years ago, the notion of paying electricity bills through mobile money or recharging with 'tokens' in Kenya seemed inconceivable. Online product sales were considered distant, and artificial intelligence is rapidly reshaping various facets of our lives. Amidst these technological leaps, those with a solid understanding of tech can navigate challenges, seize opportunities, and build a sustainable livelihood. Tech over Show aims to be the platform facilitating discussions among thought leaders, innovators, tech companies, and the government, addressing challenges and opportunities in Kenya's thriving tech industry.

Thamani

Thamani is a business show which is dedicated to emerging issues regarding micro, small and medium size businesses.

The Politalk podcast

This is The Politalk podcast. Here we look into the ins and outs of everything Kenyan politics. We pull no punches and have no reason to sugarcoat anything that matters to Kenyans.

The Trend

A two-hour-long live show that airs on Fridays. The show focuses on what is current in the entertainment industry, controversial and popular across all media platforms targeting those aged between 25 and 35 years.

The trend podcast

The trend podcast highlights and captures the best of banter from #TTTT segment that airs every Friday on NTV. It's the TTTT EXTRA

The Wicked Edition

The Wicked Edition with Dr. King’ori seeks to address serious issues through humour and relatable wit. It is a two-part half hour show filmed in front of a live audience

Trending

A collection of our premium content. Diam curabitur vehicula A collection of our premium content. Diam curabitur vehicula

Twende

Twende is a travel show that highlights beautiful, unique, diverse locations, people, and cultures. The show offers fresh perspectives on familiar locations and memorable experiences in new ones.

Unscripted

This Saturday evening lifestyle show lets viewers share their stories and life experiences as openly & honestly for the purpose of shifting the culture of silence.

VIP Access

VIP ACCESS is Anyiko Owoko’s YouTube and podcast show on Music and Culture dedicated to promoting Africa’s most promising talent and creatives. This podcast grants you VIP access into timeless interviews while providing a platform for rising as well as established artists across the continent. Since launching in 2018, Anyiko has interviewed over 70 African music stars.

WADR

This weekly news show aims to have all sides of debate but not be constrained by it, listen to main voices in the contest but not allow them to hold the viewers hostage, entertain debate but allow push back with all due respect.

When death do us part

In this podcast, three widowers openly speak about the process of grief, how they found themselves exposed to the emotional turmoil of losing their wives, and how society still does not know how to deal with them.

Your World

Your World is a health, wellness and variety show. It provides a platform for audiences and experts to share their experiences on how to improve or manage health issues, across Kenya and the Africa region.