China's CXMT Under Investigation in South Korea and Japan Over Alleged Samsung DRAM Tech Theft

Chinese semiconductor firm CXMT is reportedly under investigation by South Korean prosecutors for allegedly illicitly acquiring Samsung Electronics' DRAM manufacturing technology and personnel. According to documents reportedly obtained by South Korean media outlet NoCut News from the court, CXMT established a long-term plan named "Hefei Project" in August 2016, just two months after its establishment. The project was reportedly spearheaded by CXMT's head of research and a former executive of Samsung Electronics. One of its objectives was to obtain Samsung's 10nm process DRAM manufacturing process documents (PRP) by September 2016. This PRP comprises 620 steps and contains information that is difficult to acquire through money or time alone. Samsung Electronics had invested 1.6 trillion won (approximately $1.1 billion) over five years to mass-produce 10nm DRAM. Unlike design, semiconductor manufacturing processes are accumulated through years of mass production and continuous error correction. CXMT allegedly attempted to manufacture 18nm chips based on the memory of newly hired Samsung engineers, but this approach was not effective. After obtaining Samsung's PRP in September 2016, the company reportedly built its own documentation. South Korean prosecutors began their investigation in January 2024, after detecting signs that Samsung Electronics' core semiconductor technology had been leaked to China since 2016. At the time of CXMT's establishment in 2016, the global DRAM market was dominated by Samsung, Micron, and SK Hynix. CXMT reportedly lacked research infrastructure and a specific development plan. However, it is considered an unprecedented feat to ship its first DRAM wafer in just two years, a timeline that would be nearly impossible without acquiring intellectual property from a competitor, as building and operating a chip manufacturing plant typically takes 2-4 years, excluding research time. CXMT announced in 2019 that it had independently designed an 8Gb DDR4 chip using "independent, leapfrog technology" and began selling DRAM in China. Driven by the AI boom, CXMT's global DRAM market share surged from 4% in the second quarter of 2025 to 10% within a year, marking the first time the top three global memory chipmakers controlled less than 90% of the market in over a decade. CXMT's production capacity has also expanded, with three wafer manufacturing plants and a target of 350,000 wafers per month this year, nearing Micron's output. CXMT's progress is reflected not only in its market share but also in its revenue. Revenue grew by 716% in the second quarter of 2026. An initial public offering on Shanghai's STAR market in July also saw its stock value increase by 466%, raising $8.6 billion and making CXMT the most valuable semiconductor manufacturer on China's stock market. Meanwhile, on December 23, 2025, the Seoul Central District Prosecutors' Office announced the indictment of 10 former Samsung Electronics employees and researchers for leaking national core technology. Among them, one expert is accused of transferring "data on the 10nm DRAM manufacturing process" by hand-writing it on 12 pages before moving to work for CXMT in September 2016. Prosecutors estimate Samsung's potential damages to be at least tens of trillions of won, with Tom's Hardware estimating the figure to be around 40 trillion won, equivalent to $29.5 billion.