The Seoul Central District Prosecutors’ Office said Tuesday that five of the accused—including a former Samsung Electronics executive and engineers—were charged and held in custody for violating South Korea’s industrial technology protection laws, while the other five were charged but released on bail.
Prosecutors allege that a former Samsung researcher, who was leaving to join CXMT, copied hundreds of steps of proprietary DRAM manufacturing processes by hand, recording detailed process recipes covering equipment specifications, sequencing, and yield optimization. These handwritten notes were reportedly used to reconstruct Samsung’s manufacturing flow at CXMT. Investigators also found that CXMT acquired additional DRAM technology from SK Hynix through a supplier, further accelerating its development.
The leaked technology involved 10-nanometre DRAM processes, which Samsung reportedly spent 1.6 trillion won developing and had uniquely commercialized at the time. CXMT later adjusted and validated the stolen data to fit its own equipment, achieving production of 10-nanometre DRAM in 2023—the first such milestone by a Chinese firm. Prosecutors said the misuse of technology laid the groundwork for CXMT’s HBM development, with estimated losses for Samsung and other companies reaching tens of trillions of won.
CXMT, which is eyeing a Shanghai listing valued at $42 billion, recently unveiled its latest generation DRAM, DDR5, positioning itself as a direct competitor to South Korean chipmakers. Samsung, SK Hynix, and CXMT declined to comment on the investigation.