A former Samsung employee and his business partner have been indicted by a federal grand jury for allegedly plotting to steal trade secrets from the company and provide them to Foxconn a major Apple supplier in China. The Department of Justice (DOJ) accused the two men of stealing information on Samsung’s organic light-emitting diode (OLED) technology and selling it to the Foxconn subsidiary. The plan included setting up a shell company that posed as a business partner of Samsung hiring a former Samsung engineer to download confidential information and moving the data to China.
According to the indictment the Chinese subsidiary of Foxconn agreed to pay the shell company $2.3 million for the stolen information. The DOJ said this was part of Foxconn’s effort to compete with Samsung in the OLED market. The Taiwanese company was allegedly seeking information on Samsung’s OLED technology manufacturing processes and yield rates to improve its own production.
The indictment paints a picture of a carefully crafted conspiracy involving a network of individuals working together to steal trade secrets. In addition to the former Samsung employee and his partner four other individuals were charged with recruiting and paying insiders to obtain confidential information. This includes a senior director at Samsung and a consultant who acted as a facilitator.
The DOJ said that the case highlights the threat that foreign companies pose to US intellectual property. “Theft of trade secrets poses a grave threat to our national security and jeopardizes American competitiveness in the global market” said Assistant Attorney General John C. Demers. “Today’s indictment demonstrates the commitment of the Department of Justice to prosecuting those who steal trade secrets.”
The charges come amid escalating tensions between the US and China over trade and technology. The Trump administration has accused Beijing of engaging in intellectual property theft and forced technology transfer as part of its “Made in China 2025” plan to become a leader in advanced industries. The US has responded with tariffs on Chinese goods and restrictions on technology exports.
