Economics

U.S. Chip Engineers Charged in Theft Scheme for Chinese Firm

  • Four ex-Applied Materials employees are indicted in California
  • Prosecutors allege they downloaded more than 16,000 drawings
300mm silicon wafers are stored in a secure and controlled storage container at the Applied Materials Inc. Maydan Technology Center in Santa Clara, California, U.S., on Thursday, Sept. 1, 2011. Applied Materials Inc. develops, manufactures, markets, and services semiconductor wafer fabrication equipment and related spare parts for the worldwide semiconductor industry.

Photographer: David Paul Morris/Bloomberg

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Four former engineers at Applied Materials Inc. were charged by the U.S. with trying to steal chip designs from the semiconductor equipment giant to sell them to a Chinese startup, which may fuel fears the world’s second-largest economy is resorting to illegal tactics to break its dependence on chip imports.

Liang Chen, Donald Olgado, Wei-Yung Hsu and Robert Ewald are accused of downloading data from Applied’s internal engineering database, including more than 16,000 drawings, and plotting to lure investors to fund a U.S. and China-based startup that would compete with their former employer, prosecutors said Wednesday in a statement. The stolen specs detailed Applied’s processes for high-volume manufacturing of chips used to light and electrify flat-screen TVs and smartphones.