Emerging concerns about technology leakage from a

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Emerging concerns about technology leakage from a

디지털데일리 발행일 2013-12-01 11:10:17

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By Han Ju-yeop powerusr@ddaily.co.kr

The Digital Daily

Samsung Electronics will soon launch the operation of its semiconductor production lines in China but concerns are mounting again over the possibility of leaking core technologies to China. Samsung plans to mass produce 3D vertical NAND flash memories in full scale in its plant in China, for which its competitors have not yet developed technology.

Samsung earlier said there would be a lag of a year or a year and a half of time between the technology used in China and Korea. When Samsung announced a plan to build its first semiconductor factory in China, people feared about a possible technology leakage. Samsung tried to calm down the worries by promising a ‘technology lag.’ As this promise is not likely to be kept, people are raising concerns again. Samsung has not yet reported to the government the planned production of 3D stacked NAND flash memories in its China plant.

According to industry sources, Samsung will start mass production of 3D NAND flash memories in its plant in Xian, Shaanxi province, China during the first half of 2014. Samsung gave orders to its partner companies in and out of the country earlier this year for the production facilities, which are now arriving in China one by one. Production of 3D V-NAND flash memories requires one of the most advanced technologies. Samsung’s major competitors, such as Toshiba of Japan and Micron of the United States, have not yet completed the development. Samsung recently won the Presidential Prize of the 2013 Korea Technology Awards for its innovative 3D NAND flash technology.

An industry expert said, “Production of semiconductors in China does not directly mean that all information for mass production would be leaked out but there is a high possibility that the know-how might escape through local employees.” He also warned against any attitude of making light of the commitment of the Chinese government to the development of its semiconductor industry.

Fears about technology leakage are likely to develop into controversies. The first problem concerns Samsung’s failure of keep promises. If Samsung produces 3D NAND flash memories in China, there would be virtually no lag of time between technology of Korea and China. A small amount of the NAND flash memory chips are produced in Korea at present but when full-scale mass production starts in China, a higher proportion of the production will rather occur in China.

A clash with the government is also expected. In 2011, Samsung reported a plan to ‘export a national core technology’ to the government concerning its scheme to produce 10 nanometer(nm)-class NAND flash memories in China. At the time, the Ministry of Knowledge and Economy gave permission after examinations at it committee on the protection of industrial technology in the electric and electronic area, which convened twice. Minister of Industry, Trade and Resources Yoon Sang-jik once said, “Despite worries about technology leakage, the government approved the project after a long thought, recognizing the need for strengthening economic cooperation with China.”

But Samsung has not submitted a report to the government concerning the production of 3D NAND flash memories. Whenever a Korean semiconductor producer launches a new production process in its overseas plants, it has to report to the government or get approval, since semiconductors are regarded as a national core technology. Samsung is expected to report to the government after starting production.

No Seung-gu, an official of the Semiconductor & Display Department of the Ministry of Industry, Trade and Resources, said, “We have not received any separate report from Samsung concerning 3D NAND flash memory production.”
Samsung Electronics invests a total of billion to the semiconductor plant in Xian, including the initial investment of .3 billion. The amount is its largest single investment in an oversea semiconductor production line.