In Shanghai, a significant breach of chip technology trade secrets has been uncovered by the local police, leading to the arrest of 14 suspects and the confiscation of seven servers containing sensitive information.
Chip Technology Scandal: Arrests and Corporate Denials in Trade Secret Breach
The case revolves around Zunpai Communications, a company allegedly involved in the infringement, and its founder and CEO, Zhang Kun, who has been missing for several months. It is believed that the technology belonged to Huawei.
Amidst the controversy, Xiaomi Corporation, a notable investor in Zunpai Communications, has firmly denied any direct involvement in the infringement. Xiaomi‘s investment in Zunpai was part of a Pre-A round financing in May 2022.
However, the company clarified that its subsidiary, Hanxing Entrepreneurship Investment Co., Ltd., made the investment as a standard financial activity and not as a strategic corporate move. Xiaomi emphasized its position as one among many investors, including national and local government funds and over 20 financial institutions, without a significant stake or leadership role in the financed company.
The company further stated that it does not participate in the management or operation of the chip company and maintains no technological collaboration or knowledge-sharing with them. Xiaomi has gathered evidence to counter the allegations and reported them to the relevant authorities.
The investigation revealed that the infringement involved former employees of a rights company being lured away by high salaries and equity incentives. They were instructed to steal chip technology from their former employer, leading to the development of chips with over 90% similarity in key technical aspects. The swift action by Shanghai and Jiangsu police thwarted the mass production of the infringing chips.
The principal suspects, including Zhang and Liu, face charges related to trade secret infringement, while others involved have been released on bail. The extent of the losses to the rights company will be evaluated based on the commercial value of the stolen trade secrets.
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(Via)
