Indictment Details Plan To Steal Samsung Secrets For Foxconn China Project (reuters.com) 5
An anonymous reader quotes a report from Reuters: When former Samsung executive Choi Jinseog won a contract with Taiwan's Foxconn in 2018, he tapped his former employer's supplier network to steal secrets to help his new client set up a chip factory in China, a sealed indictment by South Korean prosecutors alleges. Prosecutors announced the indictment on June 12, saying the theft caused more than $200 million in damages to Samsung Electronics, based on the estimated costs Samsung spent to develop the stolen data. The announcement did not name Choi and gave only limited details, although some media subsequently identified Choi and his links with Foxconn. The unreleased 18-page indictment, reviewed by Reuters, provides details in the case against Choi, including how he is alleged to have stolen Samsung's trade secrets and details about the planned Foxconn plant.
Choi, who has been detained in jail since late May, denied all the charges through his lawyer, Kim Pilsung. Choi's Singapore-based consultancy Jin Semiconductor won the contract with Foxconn around August 2018, according to the indictment. Within months, Choi had poached "a large number" of employees from Samsung and its affiliates and illegally obtained secret information related to building a chip factory from two contractors, prosecutors allege. Jin Semiconductor illegally used confidential information involving semiconductor cleanroom management obtained from Cho Young-sik who worked at one of the contractors, Samoo Architects & Engineers, the indictment alleges. Clean rooms are manufacturing facilities where the enclosed environment is engineered to remove dust and other particles that can damage highly sensitive chips. Samoo had participated in the 2012 construction of Samsung's chip plant in Xian, China. Prosecutors allege Choi's company also illegally obtained blueprints of Samsung's China plant from Chung Chan-yup, an employee at HanmiGlobal, which supervised its construction and floor layouts involving the chip manufacturing process. They have yet to establish how the information on floor layout was obtained, according to the indictment.
Choi signed a preliminary consulting contract in around 2018 with Foxconn to build the chip factory potentially in Xian, his lawyer said. However, Foxconn ended the contract just a year later and only paid salaries related to the project, the lawyer said. He declined to comment on why Foxconn ended the contract or to provide further details, citing the sensitivity of the matter. The person with direct knowledge of the case said prosecutors found Foxconn had agreed to provide 8 trillion won ($6 billion) to build the factory, and Foxconn also paid several million dollars to Choi's company every month until it pulled out of the contract for reasons the indictment did not disclose. Jin Semiconductor's financial statement in 2018 said it entered into an arrangement with "a major customer" for the provision of qualified manpower in the next five years. The customer paid an advance of $17,994,217 to the company, according to the statement. Choi's lawyer said his client may be a scapegoat in a campaign by the South Korean government, caught in a rivalry between China and the United States, seeking seek to slow China's progress in chip manufacturing. [...] Choi is charged along with five other former and current Jin Semiconductor employees and a Samsung contractor employee. Trial is set to begin on July 12, court records show.
Choi, who has been detained in jail since late May, denied all the charges through his lawyer, Kim Pilsung. Choi's Singapore-based consultancy Jin Semiconductor won the contract with Foxconn around August 2018, according to the indictment. Within months, Choi had poached "a large number" of employees from Samsung and its affiliates and illegally obtained secret information related to building a chip factory from two contractors, prosecutors allege. Jin Semiconductor illegally used confidential information involving semiconductor cleanroom management obtained from Cho Young-sik who worked at one of the contractors, Samoo Architects & Engineers, the indictment alleges. Clean rooms are manufacturing facilities where the enclosed environment is engineered to remove dust and other particles that can damage highly sensitive chips. Samoo had participated in the 2012 construction of Samsung's chip plant in Xian, China. Prosecutors allege Choi's company also illegally obtained blueprints of Samsung's China plant from Chung Chan-yup, an employee at HanmiGlobal, which supervised its construction and floor layouts involving the chip manufacturing process. They have yet to establish how the information on floor layout was obtained, according to the indictment.
Choi signed a preliminary consulting contract in around 2018 with Foxconn to build the chip factory potentially in Xian, his lawyer said. However, Foxconn ended the contract just a year later and only paid salaries related to the project, the lawyer said. He declined to comment on why Foxconn ended the contract or to provide further details, citing the sensitivity of the matter. The person with direct knowledge of the case said prosecutors found Foxconn had agreed to provide 8 trillion won ($6 billion) to build the factory, and Foxconn also paid several million dollars to Choi's company every month until it pulled out of the contract for reasons the indictment did not disclose. Jin Semiconductor's financial statement in 2018 said it entered into an arrangement with "a major customer" for the provision of qualified manpower in the next five years. The customer paid an advance of $17,994,217 to the company, according to the statement. Choi's lawyer said his client may be a scapegoat in a campaign by the South Korean government, caught in a rivalry between China and the United States, seeking seek to slow China's progress in chip manufacturing. [...] Choi is charged along with five other former and current Jin Semiconductor employees and a Samsung contractor employee. Trial is set to begin on July 12, court records show.
Lost in translation (Score:1, Informative)
Stealing in most countries is known as "innocent innovation" in China. China can't come up with unique ideas themselves. Even their horrible treatment of Uyghurs, Tibetans, other various ethnic groups was 'borrowed' from the history books of other nations. Letting Covid-19 escape and kill millions of people and cause devastating world-wide financial impact - that was done with the (non-Spanish) Spanish Influenza and the black plague first. At least the rest of the world had the decency to report death count
Foxconn? (Score:2)
Why is anyone still doing business with them? A cursory search will show the number of projects they claimed to do, but then did not. Pennsylvania and Wisconsin are the two most well known, but there are several others.
Just stop doing business with them.
Professional dissertation writer (Score:1)