`Samsung technology leaked to Hynix`

Prosecutors yesterday indicted two officials of U.S. semiconductor equipment maker Applied Materials on charges of stealing technologies of Samsung Electronics and handing them over to Hynix Semiconductors over the past six years.

A total of 95 kinds of chip technology were leaked by an executive of Applied Materials identified by his surname Kwak, and an official of the Korean unit of the world`s top semiconductor gear maker, the Seoul Eastern District Prosecutor`s Office said. The company supplies its products to both Samsung and Hynix, which ranks first and second in the global memory chip market, respectively.

Out of the 95 technologies, 13 went to Hynix between March 2005 and December 2009, investigators said.

Prosecutors estimated that the leaks caused Samsung direct losses of hundreds of billions of won and an indirect loss of trillions of won.

The technologies allegedly stolen include those on Samsung`s manufacturing process of DRAM and NAND flash memory chips. Among them are the company`s most advanced 30-nanometer-class process. The technologies are key to cutting production costs, and improving manufacturing efficiency.



A Hynix executive, identified by his family name "Han," was also indicted on charges of receiving leaked information from Applied Materials officials. A former Samsung senior researcher who moved to Applied Materials after allegedly collaborating in the leak, is wanted by prosecutors.

Nearly 20 officials from Applied Materials, Hynix and Samsung were indicted in the tech leak case.

Applied Materials "collected Samsung`s core technologies extensively," the prosecutors` office said in a news release.

The U.S. company set up and managed its chip manufacturing equipment at Samsung, which gave them easy access to Samsung`s core technologies, prosecutors said.

Hynix Semiconductors released a statement, denying that the company used the leaked production technologies in its memory chips.

It also filed a petition with the Seoul Eastern District Prosecutor`s Office, demanding it probe whether Applied Materials stole and leaked Hynix`s technologies as well.

Samsung raised the possibility that the technologies obtained by Applied Materials would be leaked to its overseas rivals.

"We are concerned about the national loss as core technologies of semiconductors, Korea`s key industry, have been leaked via a U.S. equipment maker," a Samsung spokesperson told The Korea Herald.

The Korean unit of Applied Materials declined to comment on the case. "We have nothing to say on the issue," said an official.

(hjjin@heraldm.com)



By Jin Hyun-joo