Samsung Electronics and SK hynix, two leading players in the semiconductor industry, are closely monitoring a troubling trend of technology theft involving the poaching of talent from both Chinese and American chip companies. Despite efforts to enhance security measures and bind talents through non-compete agreements, the recruitment of professionals and the poaching of advanced technologies from Korean companies are expected to increase. This comes at a time when securing technological supremacy in the semiconductor sector has become crucial in the era of AI.
Instances of technology leakage and theft have once again come to light, as a former engineer from SK hynix, a major player in the high-bandwidth memory (HBM) market crucial for AI services, transitioned to the U.S. chipmaker Micron. The engineer, who was responsible for chip design for DRAM and HBM memory at SK hynix, made the move to Micron in July 2022, right after retiring from the Korean company, despite having agreed not to work for a rival company for the next two years. In response, SK hynix filed a lawsuit against the engineer to prevent him from working for its rival last August. The court ruled that the former employee cannot work for Micron until July 26 and must pay SK hynix 10 million won ($7,637) per day if he violates the ruling.
The industry perceives technology leakage as a significant issue, especially considering the time it took for the court to reach a decision. In the competitive HBM market, where SK hynix competes with Samsung and Micron for market dominance, the margin of technological difference is only a matter of a few months. The engineer who moved to Micron is known to be a key figure in HBM development, raising questions about why he violated the non-compete agreement and joined Micron.
Technology and personnel leaks often occur during the job change process, and while the law does not solve everything, it is necessary to emphasize that strong penalties will be imposed if semiconductor technologies that fall under national industrial secrets are leaked, according to Lee Jong-hwan, a professor at the Department of System Semiconductor Engineering at Sangmyung University.
Samsung Electronics and SK hynix have both suffered damage due to technology leaks. In one case, a former Samsung engineer was investigated for allegedly transferring the production process of a 20-nanometer DRAM chip, developed by Samsung in 2014, to a Chinese chip company. Additionally, one of Samsung’s chip executives came under scrutiny for misusing engineering data from the semiconductor factory between 2018 and 2019.
According to the Ministry of Trade, Industry, and Energy, the number of cases involving the cross-border leakage of industrial technology has been increasing. This highlights the severity of technology leaks in the semiconductor industry compared to other sectors. The government is actively working to bolster penalties aimed at preventing the leakage of national core technologies. Bills proposing strengthened penalties have been introduced in the National Assembly, including an amendment to the Industrial Technology Protection Act.
Kim Dae-jong, a professor of business administration at Sejong University, emphasizes the need for Korean companies to improve the treatment of their engineers. Strengthening compensation for core workers and providing them with sufficient treatment to increase job satisfaction is crucial. Building a positive relationship with engineers is essential for their professional growth and longevity.
In conclusion, Samsung and SK hynix are on high alert as more chip engineers move to foreign rivals, posing a risk of technology theft. The semiconductor industry, particularly in the era of AI, relies on securing technological supremacy, making the protection of national core technologies vital. Efforts to strengthen penalties and improve the treatment of engineers are necessary to mitigate the risk of technology leaks and retain top talent within Korean companies.
