Employees of a U.S. based-semiconductor equipment firm have been arrested on suspicion of leaking technology developed by Samsung Electronics, the world’s largest chipmaker, to rival Hynix over the past several years, prosecutors said Wednesday.

The Seoul Dongbu District Prosecutor’s Office said they have arrested two employees at AKM Semiconductor — its vice president and a representative lawyer — and have booked 10 others without physical detention for leaking Samsung’s trade secrets and memory chip making process beginning in March 2005.

The employees under investigation were known to have pocketed classified documents or dug up information from Samsung employees while frequently visiting the company’s factory to install and maintain equipment, prosecutors said.

The U.S-based firm is under contract with both Samsung and Hynix to provide semiconductor equipment, they added.

The alleged leaks include Samsung’s manufacturing process of DRAM and NAND flash memory chips as well as its investment plan for next generation chip production, prosecutors said. The prosecutors noted 13 out of a total 95 core technology items were allegedly leaked to Hynix.

Prosecutors said they also arrested a senior-executive of Hynix and a director of Samsung, and are questioning employees from the two chipmakers over their involvement in the leak.

“This case reveals that while memory chip makers have maintained tight security against competitors, business partners like equipment companies have had relatively easy access to trade secrets,” an official at the prosecutor’s office said.

“This kind of technology leakage through partner firms can occur not only in the semiconductor industry, but also other industries with similar structures, such as the auto, cell phone or computer industries. Preventive measures are needed,” the official said.

Both Samsung and Hynix expressed concern about technology leakage following the prosecution’s announcement of the investigation.

“We’re very concerned by this transgression as it is likely to damage the semiconductor market,” Samsung spokeswoman Lee Soo-jeong said.

Hynix, the world’s second largest chipmaker, was also quick to express “regret” for its employees’ involvement in the incident, but it denied the possibility that leaked information could have been used in its chip-making process.

“The technologies at issue have not been used in Hynix’s product development process at all,” the company said in a statement.

“This case broke out as an informal group of some employees were collecting information (from Samsung). We expect that the substantial truth will be thoroughly and fairly verified during the court procedure.”

YonhapNewsAgency

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