[News] Semiconductor Tech Leaks Heat Up: Latest on Samsung, SK hynix, and TSMC Trade Secret Cases

As competition in the semiconductor industry intensifies, cases of technology leaks are on the rise, involving everything from the most advanced chip nodes to cutting-edge memory. Recent incidents have highlighted major firms, including Samsung, SK hynix, and TSMC, facing allegations of trade secret theft and industrial espionage. Here’s a quick takeaway on the key cases and developments.

Samsung: Alleged DRAM Technology Leak Boosts China’s Ambitions

According to SeDaily, a former Samsung executive and three researchers were indicted and detained on October 1, for allegedly transferring core 18nm DRAM technology to China. After leaving Samsung, they reportedly joined CXMT as key members of its “Phase 2 Development Team,” using illegally obtained Samsung know-how to complete the company’s development.

SeDaily suggests the leaked technology involves Samsung’s latest 10nm-class DRAM process, developed with an investment of 1.6 trillion won. As per Business Korea, Samsung is estimated to have lost around 5 trillion won in sales last year due to this incident, with potential future damages expected to reach at least tens of trillions of won.

High earnings may be one of the motives. The reports further indicate that the individuals received salaries of 1.5–3 billion won—3–5 times their Samsung pay—over 4–6 years for their work at CXMT.

As SeDaily notes, CXMT was founded with a 2.6 trillion won investment from the local government and initially focused on older DRAM products due to limited technology. However, the company significantly boosted its market share with the mass production of 18nm DRAM and is now targeting the high-value DRAM market—including DDR5 and LPDDR5, the report adds.

According to ChinaTalk, CXMT currently trails global leaders in HBM development by just 3–4 years and plans to roll out HBM3 in 2026, followed by HBM3e in 2027.

Notably, memory tech leaks may not be Samsung’s only concern. According to SeDaily, Seoul police’s Industrial Technology Security Investigation Unit raided Samsung Display’s Asan campus in South Chungcheong Province on the 7th, suspecting violations of the Industrial Technology Protection Act. Authorities are investigating claims that some employees leaked the company’s latest OLED display technology to a Chinese competitor.

SK hynix Faces Its Own Tech Leak Case

On the other hand, another South Korean memory giant, SK hynix, is also plagued by technology leaking. As Donga Daily reported in May, Kim—who joined SK hynix in 2016 and later worked at its Chinese sales subsidiary from 2018 to 2022—decided to join HiSilicon, a Huawei subsidiary, after returning to Korea.

However, he allegedly accessed SK hynix’s internal document box and printed or photographed a total of 186 pages, including CIS-related documents, the report noted, adding that the leaked data included information on hybrid bonding technology as well—crucial for AI semiconductor manufacturing. In total, he is accused of stealing 170 advanced technologies and trade secrets from SK hynix over five months, leaking roughly 5,900 pages of sensitive data between February and July 2022, according to Donga Daily.

As SeDaily points out, despite recurring cases of industrial espionage, lenient penalties remain a long-standing issue in South Korea. From 2018 to 2022, offenders under the Industrial Technology Protection Act received an average sentence of just 10.7 months. By contrast, nations like the U.S. and Taiwan classify such crimes as acts of espionage, imposing far harsher punishments, the report adds.

TSMC’s 2nm Leak: Latest Developments

Taiwan, indeed, imposes harsher penalties for misappropriating national core technologies. As reported by the Economic Daily News, Taiwan’s High Prosecutors Office indicted three engineers on August 27 for misappropriating national core technology secrets. Prosecutors are seeking 7–14 year prison terms under national security and trade secret laws, according to the report.

The case is especially sensitive—not just due to TSMC’s cutting-edge 2nm process, which is going to enter mass production later this year, but also because a former staffer involved now works for Tokyo Electron (TEL), a key TSMC equipment supplier tied to Rapidus, Japan’s state-backed 2nm competitor.

Notably, as revealed by the Economic Daily News, TEL President and CEO Toshiki Kawai visited Taiwan twice in September to apologize to TSMC, leading to a preliminary agreement. TEL also escalated accountability to its Taiwan branch leadership and proposed a substantial compensation package, the report suggests.

Industry sources cited by the report say the plan may include faster equipment deliveries, direct procurement discounts, and support for advanced process training. With TSMC ramping up 2nm production and advancing toward 1.6, 1.4, and eventually 1nm nodes, TEL is eager to preserve the partnership, making the compensation sizable, as per the report.

Read more

• [News] TSMC’s 2nm Leak Update: 3 Engineers Indicted for Stealing Core Tech, Facing Up to 14 Years
• [News] TSMC’s 2nm Data Leak Exposes Fragile Triangle: TEL, Rapidus, and Taiwan-Japan Semiconductor Clash

(Photo credit: TSMC)