A former researcher for Samsung Electronics has been sentenced to seven years in prison by a South Korean court, for leaking core DRAM semiconductor tech to a Chinese competitor, CXMT.
The Korea Economic Daily reports reports that the 56-year-old defendant, identified only as Mr. Jeon, was arrested and indicted last May. According to “legal circles”, Jeon was sentenced by the 28th Criminal Division of the Seoul Central District Court on 22 April.
Those same legal circles report that the leaked tech was classified as “a core national technology”, and that the court, under presiding judge Han Dae-gyun, stated that “Since damage was inflicted not only on the company but also on the Republic of Korea, we have no choice but to impose a severe punishment.”
CXMT is China’s most advanced DRAM manufacturer, and has received some publicity recently as a potential alternative solution to the ongoing memory supply crisis. Its DRAM modules occasionally crop up in system RAM kits that can be bought from Chinese online marketplaces like Temu, sometimes for slightly lower prices.
Jeun was indicted alongside 10 others last year on suspicion of similar charges, although he appears to be the first to receive a sentence. The court is reported to have found the defendant to have received 2.9 billion won (just under $2 million) from CXMT over a six year period, with 300 million of that figure said to be received in stock options.
According to The Chosun Daily, the leaked Samsung 18 nm process technology was developed at a cost of 1.6 trillion won (over $1 billion), and the court noted (via machine translation): “It is questionable whether the company provided sufficient compensation for maintaining trade secrets at the time of the crime”
As two of the big three DRAM module manufacturers (Samsung and SK Hynix) are South Korean companies, it’s perhaps no surprise that its judicial system considers their technology of national importance. IP is key to maintaining a lead in these competitive times, and with memory demand remaining sky high thanks to AI server needs, it appears that protecting its technology is definitely a high priority for South Korea.
