Trade Secrets Theft: Former Samsung Executive’s Failed Attempt to Duplicate Chip Factory in China

Understanding Whistleblower Immunity Under the Defend Trade Secrets Act (DTSA)
Last Updated: March 9, 2026
Updated by: Chris Buntel

Table Of Content

Last month (June 2023) a former Samsung Electronics executive and six others were arrested and indicted for theft of trade secrets and bringing the secrets to China to set up a competing factory.  He had worked 18 years at Samsung and 10 years at SK Hynix.

The executive took detailed plans, blueprints, and clean room layouts from S. Korea to duplicate a Samsung chip factory in China.  Fortunately for Samsung, he encountered funding challenges, and could not complete the facility.  He even hired 200 employees away from Samsung and Hynix to work at the new factory.

Factory blueprints are extremely valuable, but cannot be easily protected by patents (or likely not at all).  Trade secrets are the best way to protect this type of asset.

Remember, there are many more trade secrets in your organization than you realize, and not just in technology R&D.

Further Reading: https://asia.nikkei.com/Business/Tech/Semiconductors/Ex-Samsung-executive-indicted-for-stealing-trade-secrets-for-China

from our blog

Blog, Case Law & Industry Trends, Trade Secret Strategy

What’s happening in the Epic Games trade secret lawsuit over Fortnite leaks?

Another Epic lawsuit! This case is another great, Epic even, example of how 70% of trade secret problems come from insider leaks like employee or contractor misconduct....
Blog, AI & IP, Intellectual Property & Patent Insights, Trade Secret Strategy

What is litigation funding?

With the recent press release from SIM IP and Tangibly, a client recently asked me a simple but important question: how does litigation funding actually work? The...
Blog, Featured Blogs, Guest Author Series, Press, Trade Secret Strategy

SIM IP and Tangibly Launch Trade Secret Litigation Financing Partnership

Miami – Jan 15, 2026 – Sauvegarder Investment Management, Inc. (“SIM IP”), a global leader in intellectual property-based investment and monetization, and Tangibly, an...
Blog, Trade Secret Strategy

How do litigation funding companies evaluate trade secret claims?

Trade secret misappropriation cases can produce substantial recoveries, but they are complex, expensive, and inherently risky. For companies confronting stolen trade...
Blog, Trade Secret Strategy

The financial impact of trade secret misappropriation

Trade secret misappropriation is not merely a legal dispute. It is a direct assault on enterprise value. When confidential business information is taken, misused, or...
Blog, Trade Secret Strategy

What to do after discovering trade secret misappropriation or IP theft

Discovering that trade secrets or other confidential information have been stolen, whether by an employee, competitor, or third party, poses a serious threat to your...
Blog, Trade Secret Strategy

When to use litigation funding in a trade secret lawsuit?

Trade secret lawsuits arise from intellectual property theft or the misappropriation of confidential business information. These disputes can deliver substantial...
Blog, AI & IP, Featured Blogs, Intellectual Property & Patent Insights, Trade Secret Strategy

When AI patent tools become the most valuable trade secrets

A newly filed lawsuit in the Northern District of California centers on alleged trade secret misappropriation involving an AI powered patent analysis and management...
Blog, Trade Secret Strategy

What are litigation loans and how do they work in high value disputes?

The term “litigation loans” is commonly used by companies searching for capital to pursue a lawsuit. In practice, most sophisticated commercial funding structures are...
Blog, AI & IP, Intellectual Property & Patent Insights, Trade Secret Strategy

To patent or not to patent?

To patent or not to patent, that is the right question. Don’t get us at Tangibly started on “patent vs. trade secret” or “patent or trade secret”.  There’s no reason...