Former Chinese Employees of Korean Chip Giant Accused of Stealing Core Technologies for Huawei

A Chinese female employee of the South Korean chip giant SK Hynix, suspected of leaking core technical data to Huawei, has been arrested and is currently under court review.

According to reports from Yonhap News Agency on May 28th, the Industry Technology Security Investigation Team of the Gyeonggi Southern Police Department stated that the female employee is suspected of violating the “Prevention of Industrial Technology Leakage and Protection Act.” She was arrested at the airport at the end of last month upon entering the country and is now facing prosecution under review at the Suwon District Court of the Gyeonggi Branch.

The report alleges that the female employee leaked core technology data related to reducing chip defect rates to Huawei.

This woman in her thirties started working at SK Hynix in 2013, analyzing chip defect issues. From 2020 to 2022, she served as a team leader at the company’s branch in mainland China, responsible for negotiating with corporate clients. In June 2022, she immediately switched to Huawei.

Before leaving her job, the female employee reportedly printed over three thousand sheets of paper containing solutions to core semiconductor process issues.

SK Hynix prohibits the use of USB drives by employees and keeps detailed records and management of printing content, the person who printed it, the purpose of the document, and other information. Although the female employee left a record of printed documents, SK Hynix was unaware of their purpose.

Authorities believe she transferred the printed papers in batches to external sources, but she denies the accusation.

The incident has raised concerns about the protection of intellectual property and the management of sensitive information within tech companies. The case serves as a reminder of the importance of strict data security measures within organizations dealing with cutting-edge technology.

In light of this incident, both SK Hynix and Huawei may face increased scrutiny regarding their internal security protocols and how they handle sensitive data to prevent similar breaches in the future. This case also highlights the ongoing challenges in maintaining cybersecurity in the highly competitive semiconductor industry.

As the investigation continues, it remains to be seen what further actions will be taken by the authorities and how this incident will impact the relationship between SK Hynix and Huawei, two major players in the global tech industry.