Former Chinese Employee Stole “Strictly Confidential” Data To Help Foxconn, Alleges Samsung In Indictment

A Samsung employee is being accused of stealing multiple confidential details about chip fabrication facilities when he moved to Foxconn. The former employee is in custody since May of this year and maintains his innocence.

An indictment by South Korean prosecutors alleges that Chinese national Choi Jinseok tapped into Samsung supplier network to steal secrets. Samsung has alleged that the information that was taken was sensitive in nature. Let's see the details of the ongoing case of corporate espionage.

Samsung Claims Data Theft Caused $200+ Million In Damages

Samsung claims it spent about $200 million (approx. ₹16.3 Crores) to develop technology that was critical for reliable production of semiconductor chips. Some of this valuable information is now in the hands of Foxconn due to Chinese national Choi Jinseok, Samsung has alleged.

Prosecutors announced the indictment on June 12, 2023. However, the announcement did not name Choi and gave only limited details. Some newly surfaced content from the indictment has now surfaced online, which identifies Choi and his links with Foxconn.

The unreleased 18-page indictment reveals details of the case against Choi. It details how he is alleged to have stolen Samsung's trade secrets and details about the planned Foxconn plant. It even mentions how, after leaving Samsung, Choi's Singapore-based consultancy Jin Semiconductor won the contract with Foxconn around August 2018.

Prosecutors have also alleged that Choi poached "a large number" of employees from Samsung and its affiliates. He is further accused of illegally obtaining secret information related to building a chip factory from two contractors.

What Information Did The Chinese National Allegedly Steal From Samsung Electronics?

Jin Semiconductor illegally used confidential information involving semiconductor cleanroom management, the prosecutors have alleged. Incidentally, this information was obtained from Cho Young-sik who worked at one of the contractors, Samoo Architects & Engineers, the indictment mentioned.

Choi's company also illegally obtained blueprints of Samsung's China plant from Chung Chan-yup, an employee at HanmiGlobal, the indictment mentions. This company supervised the construction and floor layouts of wastewater treatment and other subsidiary facilities involving the chip manufacturing process.

It is important to note that prosecutors have yet to ascertain how the information from contractors was obtained. Moreover, Choi's defense lawyer has stressed that the information allegedly stolen has nothing to do with how to design or make chips.

Choi worked at Samsung for 17 years, where he developed DRAM memory chips and worked on wafer processing technology. Now a 65-year-old, he left Samsung in 2001.
Samsung is hoping South Korea's laws would help the espionage case against Choi. The South Korean government prohibits valuable technologies from being transferred overseas. There are some provisions for data transfer and sensitive information exchange via licensing or partnership.

There have been a growing number of cases against Chinese nationals who have worked at leading American companies. They have subsequently set up their own companies offering consulting services to businesses in China.

Corporate espionage has always been a looming threat, especially for companies that develop new technologies. Moreover, such cases are rather difficult to pursue and the damages can be severe.