Former Samsung Engineer Testimony: CXMT Sought Samsung Process Data from Its Very Inception
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A former Samsung researcher who spent nearly three decades at the company testified in a Seoul court that CXMT planned from its founding to acquire Samsung's DRAM process data — directly contradicting the self-developed-technology narrative in CXMT's just-completed STAR Market IPO prospectus, and raising potential cross-border legal risks.
What did the witness say?
The witness, identified only as Jeon, worked at Samsung for nearly 30 years and joined CXMT as a founding member in 2016.
He testified at the Seoul Central District Court that CXMT executives — including the CEO and CTO — intended from the start to obtain Samsung's "Process Recipe Plan" (PRP) data.
This means → According to this testimony, CXMT's starting point was not independent R&D but acquiring Samsung's recipe first.
The PRP — a complete process blueprint covering roughly 600 steps in DRAM manufacturing — relates to Samsung's 18nm DRAM process, which took about five years and ₩1.6 trillion to develop.
Where does the case stand?
Jeon himself was sentenced to seven years in prison in April, after the court ruled the leaked information constituted nationally protected core technology.
However, the newer allegation — that CXMT management intended to acquire Samsung process data from inception — has not yet been ruled on.
The case is part of a broader indictment filed in December 2025 against 10 individuals.
Prosecutors say a former Samsung researcher hand-copied hundreds of proprietary manufacturing steps before joining CXMT. The adapted information helped CXMT achieve 10nm-class DRAM mass production in 2023 — a first for China. Investigators also found CXMT obtained additional DRAM technology linked to SK Hynix through a supplier.
How does the prospectus tell a different story?
CXMT's IPO prospectus, signed July 22, states the company achieved independent R&D, design, and commercial mass production by mastering key technologies, with core technology primarily from in-house development.
It also claims four generations of process platforms have reached mass production since 2016, with an independently designed 8Gb DDR4 product launched in September 2019.
In plain terms = The prospectus narrative is "we built it ourselves"; the witness narrative is "the plan was to use Samsung's recipe from day one." The two cannot both be true.
How big is CXMT's listing?
CXMT listed on the Shanghai STAR Market on July 27, raising roughly ¥57.92 billion (about $8.6 billion) — Asia's largest IPO in 2026.
Its prospectus shows a 2025 global DRAM market share of about 7.7%, ranking fourth behind Samsung, SK Hynix, and Micron.
First-quarter 2026 revenue surged 719% year-on-year to ¥50.8 billion.
This reflects a company that is no longer small — its scale and growth rate mean any legal risk directly affects the global DRAM landscape.
Where could the legal risk extend?
Analysts note that if Jeon's testimony is upheld, Korean trial records could support a Samsung trade-secret lawsuit in the U.S., including a filing with the International Trade Commission (ITC).
The precedent is Samsung Display's Section 337 case against BOE: in 2025 an ITC administrative law judge found BOE defendants misappropriated multiple Samsung Display trade secrets and recommended a limited exclusion order of 14 years and 8 months on certain OLED products.
That case ultimately saw no restrictions imposed — the parties settled in January 2026 and the ITC terminated the investigation.
This means → No U.S. proceeding targeting CXMT exists today, but the pathway is established: Korean conviction record → U.S. ITC filing → product exclusion order. Whether CXMT can avoid this pathway as it expands post-IPO is the key variable to watch.
Content is for reference only, not financial advice.