Former CEO of Changxin Memory Accused of Pressuring for Samsung Process Formula

According to a report by South Korea's JoongAng Ilbo, a statement from Chuan, the former head of equipment investment at Changxin Memory Technologies (CXMT), reveals that CXMT's former CEO Wang Ningguo summoned Chuan and other members of the Korean team from October to December 2016, demanding they bring back Samsung Electronics' Process Recipe Plan (PRP) and equipment information, threatening to report them to the Korean government if they failed to do so. Chuan stated that he felt scared at the time. CXMT's management referred to Samsung Electronics' code name as "Huangshan." After working at Samsung Electronics for 28 years, Chuan joined CXMT and was prosecuted for allegedly leaking and using Samsung's developed 18-nanometer DRAM process without authorization. In April, he was sentenced to seven years in prison in the first trial and is currently undergoing an appeal. The PRP includes the sequence of about 600 steps for DRAM manufacturing, equipment, condition values, and the companies and models of the equipment. A Samsung process design engineer, Park, hand-copied the relevant content into a 12-page notebook in September 2016 and is currently under an Interpol red notice. During the trial, Chuan mentioned that when communicating with the Chinese side, he stated that if they could not achieve 18 nanometers, they would not provide investment to CXMT, and later learned that the other party had wanted the technology from the beginning, while CXMT initially had no plans for independent development. The pressure mentioned above occurred before the investment preparation meeting. CXMT was established in 2016 with an investment of 14.4 billion RMB from the Hefei municipal government, has not been profitable for about ten years, and reported its first annual profit last year with a net profit of 7.1 billion RMB.

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