Chinese semiconductor manufacturer CXMT reportedly recruited 27 experienced engineers from Samsung Electronics and SK hynix. These specialists had an average of 15.4 years of experience at their former employers, with some holding senior positions for over two decades.

The recruitment process involved significant incentives, including doubling salaries, housing support, and education funding for children. Only nine engineers moved directly to CXMT, while 15 others transitioned through intermediary companies or academic institutions before joining the firm.

The group included experts in chip design, process integration, equipment, defect analysis, and packaging. Currently, only one of the 27 engineers remains employed at CXMT, with the others having left after an average tenure of 2.9 years.

Investigators suggest the primary goal was to acquire technological expertise to establish local production capabilities. Former employees have since moved to other Chinese firms, including Huawei, SMIC, and HiSilicon.

South Korea has tightened its laws against industrial espionage, introducing prison sentences of up to 30 years. In 2024, Samsung Electronics filed charges against 10 former engineers for allegedly leaking secrets to CXMT, estimating damages at $3.7 billion.