In a handwritten letter to Reuters, his first comments to
the media since he was detained on May 25, Choi Jinseog elaborated on his
defense plan and said the allegations against him regarding the Xian plant were
not substantiated.
Prosecutors earlier this month indicted the former Samsung
executive for illegally obtaining secret information to build a semiconductor
plant only 1.5 km (1 mile) from a Samsung factory in Xian, China.
Choi is in custody at a detention center in Suwon, a city
south of Seoul where Samsung has its headquarters. He previously denied all the
charges through his lawyer.
In the letter, Choi said the factory was planned for
Taiwan's Foxconn, for early test production of DRAM memory chips, while
Samsung's plant in Xian was designed to manufacture NAND flash memory chips.
Choi said DRAM process technology is more than 30% different
from making NAND flash chips because it is more complicated, and some equipment
used in manufacturing both chips is also different.
"They use different equipment and the layout of
(Samsung's) NAND flash chip equipment is really of no use for us," Choi said
in the letter.
Several semiconductor industry experts interviewed by
Reuters, who aren't involved in the case, confirmed there are differences in
processes and equipment used for NAND and DRAM production, without specifying
them precisely.
Samsung declined to comment, citing the ongoing
investigations.
Neither Foxconn nor the companies contracted to build the
Samsung plant were accused of any wrongdoing.
Foxconn, formally called Hon Hai Precision Industry Co Ltd,
referred Reuters to earlier comments where it said it was "aware of
speculation" around the case but doesn't comment on ongoing
investigations.
"We abide by laws and regulations governing
jurisdictions we operate in," Foxconn said.
SECRET DATA
According to an unreleased 18-page indictment, reported
earlier by Reuters, prosecutors allege Choi planned to build a DRAM factory in
Xian for Foxconn and illegally used secret data his company's employees
obtained from workers of two Samsung contractors.
A NAND flash chip is a storage chip that retains data even
when a device is turned off, unlike a DRAM chip which loses data when the power
is off. Both are used in smartphones, computers, and many other electronic
devices.
Prosecutors claim Choi poached "a large number" of
employees from Samsung and its affiliates and pressured several employees to
obtain secret information involving the management of special semiconductor
"clean rooms", plus factory blueprints and layouts, to shorten construction
time for the planned China factory.
Choi's lawyer, Kim Pilsung, says this information is
non-sensitive data easily accessible to those in the chip supply chain.
Prosecutors argue they are "core national technology" protected by
law and their theft caused more than $200 million in damages to Samsung.
NOT XIAN
Choi sent the letter to Reuters via his adviser who recently
visited him. The adviser, also a close friend, requested anonymity due to the
sensitivity of the matter.
Choi confirmed the letter was genuine, according to Roh
Hwa-wook, another long-time friend of Choi, who visited him on Thursday.
In his letter, Choi said his plan was to build a research
and development chip line and he didn't need to copy Samsung's chip facilities
designed for mass production.
The plant, known as a fab, was never built after Foxconn
pulled out, Choi and his lawyer said.
"What we were planning to build was a R&D fab and
there is no R&D fab at (Samsung's) Xian plant. When there is no R&D fab
to copy, there is no reason to copy," Choi said.
Prosecutors declined to comment on the content of Choi's
letter ahead of his trial scheduled for July 12. They have said the focus of
the case is illegal acquisition and use of sensitive information, which Choi
denies.
Choi also rejected the claim by prosecutors that it was Xian
where he wanted to build the alleged copycat factory, saying the plan was to
build a plant in Qingdao after weighing several cities including Xian.
Neither the Qingdao or Xian city governments responded to
Reuters' request for comment.
Choi's lawyer Kim said he plans to seek bail, citing Choi's
health condition after he underwent a heart procedure earlier this year.
Choi's adviser said the accused felt "cornered"
and "distraught" by the industrial espionage charges, which are
viewed by several chip industry experts interviewed by Reuters as part of South
Korea's efforts to slow China's progress in chip manufacturing. © Reuters