Intellectual Property: What Does That Mean, Samsung?

June 19, 2023

Vea4_thumb_thumb_thumb_thumb_thumb_t[1]_thumb_thumb_thumbNote: This essay is the work of a real and still-alive dinobaby. No smart software involved, just a dumb humanoid.

I read “Former Samsung Executive Accused of Trying to Copy an Entire Chip Plant in China.” I have no idea if [a] the story is straight and true, [b] a disinformation post aimed at China, [c] something a “real news” type just concocted with the help of a hallucinating chunk of smart software, [d] a story emerging from a lunch meeting with “what if” ideas and “hypotheticals” were flitting from Chinese take out container to take out container.

It does not matter. I find it bold, audacious, and almost believable.

6 12 stealing documents

A single engineer’s pile of schematics, process flow diagrams, and details of third party hardware require to build a Samsung-like outfit. The illustration comes from the fertile zeros and ones at MidJourney.

The write up reports:

Prosecutors in the Suwon District have indicted a former Samsung executive for allegedly stealing semiconductor plant blueprints and technology from the leading chipmaker, BusinessKorea reports. They didn’t name the 65-year-old defendant, who also previously served as vice president of another Korean chipmaker SK Hynix, but claimed he stole the information between 2018 and 2019. The leak reportedly cost Samsung about $230 million.

Why would someone steal information to duplicate a facility which is probably getting long in the tooth? That’s a good question. Why not steal from the departments of several companies which are planning facilities to be constructed in 2025? The write up states:

The defendant allegedly planned to build a semiconductor in Xi’an, China, less than a mile from an existing Samsung plant. He hired 200 employees from SK Hynix and Samsung to obtain their trade secrets while also teaming up with an unnamed Taiwanese electronics manufacturing company that pledged $6.2 billion to build the new semiconductor plant — the partnership fell through. However, the defendant was able to secure about $358 million from Chinese investors, which he used to create prototypes in a Chengdu, China-based plant. The plant was reportedly also built using stolen Samsung information, according to prosecutors.

Three countries identified. The alleged plant would be located in easy-to-reach Xi’an. (Take a look at the nifty entrance to the walled city. Does that look like a trap to you? It did to me.)

My hunch is that there is more to this story. But it does a great job of casting shade on the Middle Kingdom. Does anyone doubt the risk posed by insiders who get frisky? I want to ask Samsung’s human resources professional about that vetting process for new hires and what happens when a dinobaby leaves the company with some wrinkles, gray hair, and information. My hunch is that the answer will be, “Not much.”

Stephen E Arnold, June 19, 2023

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