Samsung’s memory-chip edge is facing a growing threat, and South Korean investigators say the problem isn’t just overseas competition—it’s insider know-how quietly walking out the door.
Only months after a former Samsung employee received what was described as the toughest criminal sentence yet for leaking 18nm DRAM trade secrets to China, a new case has surfaced—this time tied to even more advanced 10nm-class DRAM technology allegedly passed to China’s ChangXin Memory Technologies (CXMT). Prosecutors believe the disclosures helped accelerate CXMT’s progress in a fiercely competitive part of the semiconductor world where years of research, massive funding, and highly specialized process expertise can decide who leads and who follows.
South Korea’s Seoul Central District Prosecutors’ Office, through its Information Technology Crime Investigation Department, has arrested a current director at CXMT for allegedly violating the Industrial Technology Protection Act. The director is reportedly a former Samsung employee and is accused of playing a key role in developing CXMT’s 10nm DRAM technology. Authorities also arrested four additional individuals currently working at CXMT.
Investigators say CXMT didn’t rely on chance. Prosecutors allege the company put an organized plan in place to fast-track development by recruiting high-value talent—people with firsthand experience in cutting-edge DRAM manufacturing. While “10nm” can sound familiar from mainstream chip discussions, 10nm-class DRAM is its own battleground, and progress is difficult and expensive. Competitors have spent years reaching each new generation: SK hynix only began mass production tied to its sixth-generation 10nm-class DRAM process toward the end of 2024, and Samsung reportedly invested 1.6 trillion won (about $1.08 billion) over five years to develop its own 10nm DRAM technology.
Prosecutors claim CXMT benefited from that kind of hard-won expertise without paying the full cost of invention. In a statement, they alleged the company “fraudulently used” top-tier semiconductor process technology during the development cycle, noting that CXMT is backed by significant local-government investment said to total 2.6 trillion won.
The investigation also paints a detailed picture of how the alleged leaks happened. Prosecutors say one former Samsung employee alone provided “hundreds of steps” worth of process information, then corrected and verified the data—actions authorities believe contributed to China’s first successfully mass-produced DRAM in 2023. Investigators also claim CXMT used a front company to attract and hire former Samsung staff.
Another ex-Samsung employee who reportedly moved to CXMT in 2016 is accused of leaking substantial handwritten material related to DRAM technology, according to prosecutors. That detail underscores how trade secrets don’t always leave through obvious digital channels; sometimes the most valuable processes and manufacturing “recipes” can be carried out in the simplest form.
The stakes are enormous. Prosecutors estimate the damage to South Korea’s competitive position could amount to trillions of won—effectively billions of dollars—reflecting not only lost R&D value but also the potential long-term impact on market share, pricing power, and industrial leadership.
This latest investigation lands against the backdrop of a major February 2025 ruling, when South Korea’s Central District Court sentenced a former Samsung team manager to seven years in prison for leaking trade secrets linked to 18nm DRAM technology to CXMT.
CXMT’s rapid rise helps explain why these cases are drawing intense scrutiny. The company is China’s largest memory semiconductor manufacturer and is associated with advanced products including DDR5 and HBM3. By late 2025, CXMT was reported to have production capacity reaching up to 280,000 wafers per month—roughly 15 percent of global DRAM output—making it a significant force in the memory market and a direct competitive pressure on established leaders.
As prosecutors continue building cases under South Korea’s industrial technology laws, the message is becoming clearer: in the race for next-generation DRAM, protecting process technology may be as critical as manufacturing it.
