Major Leak of Samsung’s 10nm DRAM Technology to China’s CXMT
In a significant blow to South Korea’s semiconductor industry, several former Samsung executives and employees have been implicated in leaking critical 10nm DRAM technology to China’s Changshin Memory Technology (CXMT). This comes shortly after a former Samsung employee received one of the harshest criminal sentences for leaking 18nm DRAM secrets to the same Chinese firm. The latest revelations highlight ongoing concerns about intellectual property theft in the fiercely competitive semiconductor sector.
Details of the Investigation and Arrests
According to South Korea’s The Elec, the Information Technology Crime Investigation Department of the Seoul Central District Prosecutors’ Office has arrested a current director at CXMT, who is also a former Samsung employee. This individual is alleged to have played a pivotal role in developing CXMT’s 10nm DRAM technology. In addition to this director, four other CXMT employees have been detained for their involvement in the leak. Prosecutors assert that CXMT orchestrated a calculated strategy to accelerate its 10nm DRAM development by recruiting key talent from Samsung and using a front company to facilitate these hires.
The investigation uncovered that one former Samsung employee leaked hundreds of detailed process steps, which were then corrected and verified, enabling CXMT to achieve China’s first successful mass production of DRAM in 2023. Another former Samsung staff member who joined CXMT in 2016 reportedly provided extensive handwritten notes on DRAM technology, further aiding CXMT’s progress.
Context and Impact on the Semiconductor Industry
The 10nm DRAM process is a highly competitive and advanced node in chip fabrication. For context, SK hynix is only expected to begin mass production of its sixth-generation 10nm DRAM by the end of 2024. Samsung itself invested approximately 1.6 trillion won (around $1.08 billion) over five years to develop its 10nm DRAM technology. South Korean prosecutors emphasised that CXMT, China’s first and only DRAM semiconductor company with local government investment of 2.6 trillion won, fraudulently utilised South Korea’s leading semiconductor technology throughout its development.
These leaks have reportedly caused damage running into trillions of won, severely impacting South Korea’s competitive edge in the global semiconductor market. CXMT is China’s largest memory semiconductor manufacturer, producing advanced products such as DDR5 and HBM3. By late 2025, the company is capable of producing up to 280,000 wafers per month, accounting for roughly 15% of the global DRAM output.
Legal Consequences and Industry Ramifications
Earlier this year, South Korea’s Central District Court sentenced a former Samsung team manager to seven years in prison for leaking 18nm DRAM trade secrets to CXMT. This latest case involving the 10nm technology leak underscores the ongoing legal crackdown on intellectual property theft in the semiconductor industry. As competition intensifies globally, protecting proprietary technology remains a critical challenge for South Korean firms.
Moving forward, industry watchers will be keen to see how Samsung and other South Korean companies respond to these breaches and what measures are implemented to safeguard their valuable semiconductor innovations.
For more on semiconductor industry developments, see the detailed report from The Elec.
In summary, the arrests mark a significant moment in the ongoing battle over semiconductor technology theft, with far-reaching implications for South Korea’s position in the global memory chip market.
Source: Thelec