Stealing intellectual property from a company is punishable by law since the involved organization/person is putting the firm at risk. When it comes to trade secrets, confidential information should be safely kept from potential thieves.
According to the new report, that's what happened to ASML, a Dutch manufacturer which is known for creating the high-end chips in the world. The suspect who allegedly stole the chip technology from the firm is reportedly staying now in China.
ASML Pressed Charges Against IP Theft
Amid the continuous semiconductor shortage, many tech companies have struggled in production because of the limited resources. Apart from that, some of them could not keep up with the surging demand for chips.
Per Bloomberg's report, ASML has pressed charges against a Chinese tech firm that allegedly stole its trade secrets. This particular company is believed to be one of the contributing companies for chip production in the country.
The article says that Dongfang Jingyuan Electron Ltd, a firm based in Beijing, is closely tied with Xtal Inc. ASML used the latter to steal its IP.
To bring light to the issue, it was found out that Dongfang and Xtal were just the same company under two different guises. The 2018 California trial said that Zongchang Yu, an engineer who previously worked at ASML, was the mastermind behind this merge.
In a similar report from Bloomberg, the goal of the culprit is to retrieve the technology from ASML. Later, the IP will be transferred to China.
ASML's attorney said that Yu is bringing the "secret" to the country to contribute to the development of the chip industry. As we know, the semiconductor business is heavily dominated by Western firms.
Based on the transcripts of the proceedings, the engineer was even involved in the two-million heist of source codes from ASML. The software was distributed to both Dongfang and Xtal employees based in China and the United States.
According to ASML's lead attorney Patrick Ryan, this scenario is not an accident. He said that this splot intentionally aims to steal the technology so the Chinese government would benefit.
Related Article: Apple Sues Rivos, a Chip Startup that Allegedly Stole Employees, Trade Secrets from the Big Tech
China is Not a 'Semiconductor' Country
While China excels in gaming, aerospace, and military technology, the country lags in producing advanced chips. Following President Joe Biden's decision to impose stricter regulations on SMIC, the shipment of the semiconductors just became much harder.
According to Tech Times, China has the potential to catch up with foreign chip makers. Unfortunately, it will still need some tools coming from its foreign competitors.
Elsewhere, Reuters previously reported that in Taiwan, 10 Chinese firms were reportedly caught red-handed following their unlawful operations. The involved companies were engaging in illegal poaching.
According to the authorities, the firms have been operating in Taiwan without approval.
Read Also: EVGA Graphics Card Shipments Are Reportedly Stolen in California | Here's the Bad News Behind This
This article is owned by Tech Times
Written by Joseph Henry
