Former Samsung Executive Caught Stealing Data To Clone A Chip Factory
It appears that Samsung is not out of the woods (yet) in terms of protecting its confidential data. Shortly after A.I. related blunders, a Samsung insider was found to be stealing company technology to clone a chip factory in China.
First it was unknowing acts of inputting data into an A.I. tool to correct coding. Prior to that was allegedly meeting minutes that involved confidential wound up being leaked. The common denominator between the two was data breach though it was anybody’s guess if it were honest mistakes.
The latest involved a conscious act of knicking confidential data to a set up a counterfeit Korean chip factory. In various reports, prosecutors alleged the 65 year old former Samsung Electronics executive was apprehended on suspicion of stealing stealing company technology for a copy-cat chip factory in China and jeopardising national economic security.
Such is an indication of the cutthroat chip industry with the prevalent geopolitical conflict. The acts included theft chip plant detailed engineering data and design drawings, from August 2018 to 2019.
Formerly From SK Hynix
South Korea is a known chip powerhouse with Samsung and SK Hynix dominating the ring. The defendant happened to be a former Vice-President possesses 28 years’ worth of professional experience at both chipmakers. He is accused of illegally acquiring Samsung data to build a rival factory only 1.5 km (1 mile) away from a Samsung chip manufacturing facility in Xian, China, the Suwon District Prosecutors’ Office said in a statement.
Prosecutors added the estimated losses of data theft in this degree of data is at least KRW300 billion ($233 million) for Samsung Electronics.
“It’s a grave crime that could deal a heavy blow to our economic security by shaking the foundation of the domestic chip industry at a time of intensifying competition in chip manufacturing,” the prosecutors’ office said.
In semiconductor manufacturing, impurities are a big no-no. That’s where boron enhanced diffusion (BED) technology comes in – it ensures every step of the production process is free of unwanted extras. The layout can determine the floor plan and dimensions of a chip plant’s eight core production processes. Secrets like these are vital for crafting sub-30-nano DRAM and NAND flash chips and are even considered national core technologies.
Replicating A Titan’s Facility
Unfortunately, not everyone can be trusted with these secrets. His plan fell through after a promised investment of US$6.2 billion from a Taiwanese company fell through.
Last year, the former executive received a staggering investment of KRW460 billion from Chinese investors. With this influx of funds, he proceeded to build a state-of-the-art chip manufacturing plant in Chengdu based on Samsung technology.
The Associated Press reported the suspect created chip manufacturing companies in China and Singapore with the backing of Chinese and Taiwanese investors and lured more than 200 chip experts from Samsung and Hynix with higher pay before arranging to smuggle out crucial technologies from Samsung, prosecutors said.
Analysts estimated the technology gap between China and South Korea tops at two years between China-based YMTC’s NAND Flash Chips and that of Korean titans — which could be another pull factor for data theft to clone a factory given it is almost on par.
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