A former Samsung Electronics executive, identified only as “A,” has been arrested and charged with attempting to replicate Samsung Electronics’ semiconductor factory in China. The Suwon Prosecutors’ Office announced that they had arrested “A,” five Chinese semiconductor manufacturing company employees and one Samsung Electronics subcontractor. They have been charged without detention for stealing factory design blueprints and violations of the Industrial Technology Protection Act and the Unfair Competition Prevention Act. These charges involve illicitly obtained trade secrets, such as Samsung’s Basic Engineering Data (BED), process layouts and factory design drawings.

“A” was believed to be planning to establish a semiconductor factory in Xian, China. Despite recruiting over 200 people from the domestic semiconductor industry, the plan to build the “copycat” factory did not materialize due to the alleged failure of an investment agreement with a Taiwanese electronics manufacturer. Nevertheless, prosecutors stated that “A’s” company still possesses the stolen factory design blueprints and has even completed the construction of an R&D building, producing semiconductor prototypes using Samsung’s technology.