News & Analysis

Number indicted in chip-spying case rises to 18, says report

Peter Clarke

2/8/2010 6:18 AM EST

LONDON — The number of people facing charges related to the passing of process technology secrets from Samsung Electronics Co. Ltd. to Hynix Semiconductor Inc. has risen to 18 according to a Sapa-AP report.

It was revealed last week that a number of employees at Applied Materials' Korean subsidiary are alleged to have stolen manufacturing process technology details for DRAM and NAND flash memory as well as investment plans for chip production, and passed them to a Hynix employee who has also been indicted. The information was passed to Hynix between March 2005 and December 2009 and has cost Samsung more than $100 million, earlier reports said.

Eighteen people have been indicted although 14 were not physically detained, according to the Sapa-AP report which quoted Kim Yeong-cheol, a prosecutor handling the case, as its source. Prosecutors are also looking for a former Samsung employee, who is wanted for questioning, the report added.

Two of those indicted — an Applied Materials vice president who was formerly head of Applied Materials Korea, and one of the subsidiary's current employees — are being held, the report said.

Related links and articles:

Analyst: Applied to lose share amid scandal

Two arrests made in Chinese espionage cases





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