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US Accuses China, Taiwan Firms With Stealing Secrets From Chip Giant Micron (yahoo.com)

US Attorney General Jeff Sessions announced charges Thursday against Chinese and Taiwan companies for theft of an estimate $8.75 billion worth of trade secrets from US semiconductor giant Micron. From a report: Sessions said the case was the latest in a series that are part of a state-backed program by Beijing to steal US industrial and commercial secrets. "Taken together, these cases and many others like them paint a grim picture of a country bent on stealing its way up the ladder of economic development and doing so at American expense," Session said. "This behavior is illegal. It is wrong. It is a threat to our national security. And it must stop." The indictment released in the US district court in San Jose, California alleges that Chinese state-owned Fujian Jinhua Integrated Circuit Co. and privately owned United Microelectronics Corporation of Taiwan, along with three UMC executives, conspired to steal Micron trade secrets to help UMC and Fujian Jinhua develop DRAM chips used in many computer processors. It said the three Taiwanese men -- Stephen Chen Zhengkun, He Jianting and Kenny Wang Yungming -- all previously worked at Micron and stole its technology when they joined UMC with the express purpose of transferring it to Fujian Jinhua, a two-year-old firm. Chen was originally a top executive at Micron, then moved to lead UMC, and subsequently became president of Fujian Jinhua.

37 of 99 comments (clear)

  1. Re: IT WAS RUSSIA by Anonymous Coward · · Score: 1

    It was several years ago, but Russia got caught infiltrating Cisco and eBay. Obama did nothing about it.

  2. Why didn't they patent by Anonymous Coward · · Score: 3, Interesting

    I work for a company in the industry. When we receive InfoSec training, we are told that, unlike patents, trade secrets cannot be legally enforced. The only legal resource for trade secrets is confidentiality agreements with employees and contractors. Training tells us that it's fair game if a competitor by any means obtains a trade secret, as it ceases to be secret the moment it's shared. Weren't patents precisely invented to discourage trade secret keeping behavior? Can a trade secret be registered?

    1. Re:Why didn't they patent by swan5566 · · Score: 3, Informative

      If you are caught stealing trade secrets from a company, you can be sued for damages in civil court. Now if you develop those secrets independently, you're fine. If the company somehow publicly discloses a secret, then it's fair game as well.

      --
      In debates about Christianity, there are two groups: those looking for answers, and those looking to just ask questions.
    2. Re:Why didn't they patent by mangastudent · · Score: 4, Informative

      Patents are indeed designed to provide strong enforcableblity advantages over trade secrets, plus advance the state of the art by publicly revealing your secret sauce. Worked wonders in Silicon Valley, e.g. company A would develop invention X, company B would realized X could be vastly improved with invention Y, they'd cross license and both and their customers would benefit.

      But that'st not to say that trade secrets can't be enforced. Sure, if stealing company C were to broadcast to the wide world the secrets, they've lost their status as such, but why would they do that, instead of gaining advantage by keeping them secret inside the company? The theft of them is of course actionable, Micron has been suing these companies and I think individuals, and now the DoJ has decided the case has merit and is serious enough for them to step in.

      Which will make things very sticky for UMC and any of the relevant employees in Taiwan, since they have the rule of law there, unlike the PRC. We can also enforce all sorts of penalties starting from the exit from the border of the PRC, and go further if the PRC thumbs their nose at us if the chips produced using these trade secrets are only used for the internal market.

      Ultimately we really should revoke both the PRC's membership in the WTO and their Most Favored Nation Status, if they're not willing to play by the rules established for those, especially now that they're not really a developing nation. The American hating whataboutists should consider that acceptable behavior changes as you make such a transition.

    3. Re:Why didn't they patent by CanadianMacFan · · Score: 2

      If by we you mean the US then I doubt the US is going to ask for China to be removed from the WTO since the US wants to leave the WTO themselves.

      And China isn't the only country that doesn't play by the established rules when it's in their best interests. The US does this quite often, especially since Trump has come into office.

    4. Re:Why didn't they patent by Plus1Entropy · · Score: 2

      Generally trade secrets are things that aren't patentable or worth patenting. They're usually highly esoteric, whereas patents are supposed to have utility beyond a single immediate application (or else it would be a very weak patent).

      The classic example is the formula for Coca-Cola. It's not patentable because it likely doesn't have any novelty, but it's obviously highly valuable. And that value somewhat depends on it remaining a secret.

      In fact, say Coca-Cola was able to, and did, patent their formula. Well, at that point it would become public knowledge that anyone with access to the USPTO site could lookup. While Coca-Cola would have the 20 year (or however long) exclusivity to the patent, that only restricts monetization. I could start making Coca-Cola in my bathtub, legally, immediately, as long as I don't sell it. Also anyone would be free to innovate on the recipe even while the patent is active.

      --
      Only crack the nuts that crack. You don't put the ones that don't crack in the sack.
  3. Do as I say, not as I did by hackingbear · · Score: 2, Informative

    The US itself built its industry by stealing from others, massively. Without that, the US today would be just another Mexico.

    1. Re:Do as I say, not as I did by mangastudent · · Score: 2

      Are US or the PRC still developing nations? Are we unreasonable to expect developed nation behavior from a country that by nearly all measures is developed?

    2. Re:Do as I say, not as I did by MattBear · · Score: 2

      Well... Seems to me the primary difference here is that we stole from the British Empire (a super power, which arguably stole it's tech anyway), when we we're recently liberated British colony (2nd world country equivalent). As opposed to being a super power conducting state sponsered corporate espionage against another super power.

    3. Re:Do as I say, not as I did by mangastudent · · Score: 1

      You make some very good points, but I'll reply that it's not a binary thing ... and ask you, what nations are developed by your criteria? Poland, maybe?

      Not even Switzerland satisfies the first criteria; all told, your point is pointless in the context of the discussion.

    4. Re:Do as I say, not as I did by mangastudent · · Score: 2

      I tend to prefer GDP by PPP, but that doesn't change things much.

      Still, how "developing" can you be if you're running and building multiple fab lines, at least some of them fairly close to state of the art? This Wikipedia list is of limited utility because evidently a lot isn't known about many plants, but note that India has exactly 1, run by the government's Indian Space Research Organisation (which is more than a little competent at their official purpose, even evading the Mars curse), and it's doing an 180 nm process on 200 mm wafers. Although Russia is about as bad, but I think that's more a command economy transitioning to a mafia economy thing.

      I only skimmed the list after sorting by location, but I think it supports my case.

    5. Re:Do as I say, not as I did by KonoWatakushi · · Score: 1

      Except that you can't steal ideas, and trying to monopolize them is backward, and not at all in the interest of humanity. We should all encourage the proliferation of good ideas; not only can we all share their benefit at no cost, but then the entire world can freely cooperate to improve the state of the art.

      The problem isn't that the US "stole" ideas from Britain, but that they didn't discard the regressive concept of "Intellectual Property" after disrespecting it. In reality, new ideas don't spring forth from a vacuum, they are built upon a mountain of collective experience, and are as much a product of circumstance as ingenuity. Allowing a monopoly on any one can further impede progress by introducing artificial bottlenecks. Everything is a Remix illustrates the concept nicely.

      To be fair, this specifically is about trade secrets, but corporate secrets don't stay that way, and it is hard to argue that US monopolists haven't already seen a fair benefit from anything China has "stolen". I'm more concerned about the snowballing monopolies in the US which certainly don't benefit the majority of citizens.

    6. Re:Do as I say, not as I did by loonycyborg · · Score: 1

      In reality it's about enforcement of national role distribution. That's how UK built the world as a world power. They wanted for Anglo-Saxons(that includes US) to be idea creators, organizers and researchers while other nationalities should be workers who do what they're told. Since most of world's population is located in China and India such role distribution isn't actually sustainable, but it can be forced via scams and military means for two or three centuries tops. You can fool all the people some of the time, and some of the people all the time, but you cannot fool all the people all the time. Romans and Mongols have fallen, and just like that Brits will fall too.

    7. Re:Do as I say, not as I did by hackingbear · · Score: 1

      1. having a fab line or two does not imply advanced economy. they are just like factories;
      2. requiring developing countries to not develop its tech industry and have to stuck in low end manufacturing is selfish and unreasonable;
      3. you were implying developing countries can steal tech is OK, I'm sure plenty of people don't agree with you;
      4. using #3 to justify the early theft acts of the US is hypocritical.
      5. the West has signed up to the fact that China has been a developing country, without a clear legally binding agreement for removing that status. so even if that's no longer true, it is the US and its puppet friends' earlier flaws; why should China take the initiative to harm its own people? If the West is civilized, they should start negotiating instead of making up and exaggerate accusations.
      6. under the WTO agreement, most economic practices the US accusing China are allowed, given its developing country status. See #5 for remedies.

  4. Re:Any actual evidence this time? by Anonymous Coward · · Score: 1

    Isn't that precisely the behavior of the US at the start of the industrial age? What goes around comes around.

  5. Re:Any actual evidence this time? by hackingbear · · Score: 1

    Yes, like this one... oh sorry, it pointed at the wrong direction.

  6. Re:Any actual evidence this time? by Anonymous Coward · · Score: 3, Informative

    LOL, they were caught red -handed. Here's some background from last summer for those obviously not following the story.

    https://www.nytimes.com/2018/06/22/technology/china-micron-chips-theft.html

  7. Re:It's time to shoot Fox News faggots in the face by DCFusor · · Score: 3, Insightful

    Ah yes, demonstrating once again that the left/progressives are "the religion of peace". Troll.

    --
    Why guess when you can know? Measure!
  8. Re:Any actual evidence this time? by hackingbear · · Score: 1

    South China Morning Post is a Hong Kong newspaper; maybe you are talking about CNN. :-)

    Fair, you don't have to believe them; maybe they were making FAKE news. :-)

    But you should read through all the documents in the Snowden leak to see for yourself if the source data are there.

  9. What did the US expect? by AHuxley · · Score: 4, Insightful

    When it opened tech production line in Communist China in the 1980's-1990's?
    That it was all going to be union free low cost Communist labor for decades making low tax computer parts?
    The USA could have kept its tech production lines secret in low tax Ireland, secure in low tax parts of the USA, even opened up in Northern Ireland with a huge UK tax "considerations" just for creating local jobs.

    The US gov allowed its tech brands to set up in China and now finds the Communist took the best US tech?

    Don't build your tech factories in Communist nations and your tech will stay secure.
    Lots of normal nations wanted US tech jobs and would have totally respected and supported all USA security just to get their work force new US tech production line factory work.

    What did generations of US govs allow? Allow US brands to give away US secrets to Communist China with every new generation of tech investment.
    Was the US brands ingratiation with a Communist party worth it now all the US secrets are lost?
    Was a few MI6 and CIA "business" spy fronts deep in China worth the total loss of generations of US tech secrets to China?

    --
    Domestic spying is now "Benign Information Gathering"
    1. Re:What did the US expect? by AHuxley · · Score: 1

      That US gov and mil did not understand Communist party support for North Korea, Vietnam?
      The US went from war to investing in a nation with full Communist politics that did everything it could against the USA for decades.
      That opening US computer production lines in a Communist nation would be secure at any price?
      All that investment did was give US tech to Communist China for free.
      Then invite US educators to give away US education to the world for free.

      --
      Domestic spying is now "Benign Information Gathering"
    2. Re:What did the US expect? by vix86 · · Score: 1

      There is still one thing those "normal nations" were missing and are still missing, that China provided a lot of these electronic hardware manufacturers: little to no operating regulation.

      It's starting to change very slowly, but for the longest time, China had incredibly lax environmental regulations. The production of some electronics results in a fair amount of waste that can be pricey to handle in "normal countries." Also, work environment safety is really lax in China as well which helps draw down the price associated with building the products.

      This will continue to be the case in a lot of parts of the world in the future to come. Poor regions have no reason to care about health and safety when 80% of the population is poor and possibly starving.

    3. Re:What did the US expect? by AHuxley · · Score: 1

      Parts of South America and non communist Asia would have offered the new US private sector investment the same tax and operating regulations.
      To get the jobs. A 1970-1980's export location with electrical power, no tax and no regulations, new ports and roads.
      English speaking experts. Rule of law.
      They would have kept US secrets and offered equal low wages. No unions and no communist spies.

      Their mil/governments would have done all they could to offer low wages and understood all NSA/CIA demands for US export security.

      Why go for the nation with full Communism and all its support of past wars with the USA?

      --
      Domestic spying is now "Benign Information Gathering"
    4. Re:What did the US expect? by vix86 · · Score: 2

      I don't know much about South America's resources very well, but I know another factor in the electronics manufacturing in China was due to a large number of rare earth metal deposits (which generate a large amount of ground water toxins during mining, see the lax environmental regulations again). I know Brazil has some mines, but I can't tell if they knew about those mines in the 80s or not. I found a slide online that shows China's rare earth mining accelerating drastically in the mid-80s. That really helped with the decision to turn China into a manufacturing power house; at least in electronics.

    5. Re:What did the US expect? by nasch · · Score: 1

      "Allowed".... does the federal government have any authority to tell a private US company it's not allowed to hire workers or set up manufacturing in a particular country?

  10. Re:Any actual evidence this time? by Anonymous Coward · · Score: 1

    This.. take a read : https://www.bloomberg.com/opin...

  11. Re: It's time to shoot Fox News faggots in the fac by DCFusor · · Score: 1

    Actually, responding to a horribly partisan comment doesn't mean you're the other flavor of partisan...and yes, I know, it's dumb to feed the trolls.
    I also know criticism of one's own side is so rare as to make people think you're on the other one. But what if you hate sides generally?
    I'm actually anti-partisan, more anti to the harder core ones, which I feel is consistent. It's dumb to reduce every thought to two states - we're not binary. we're human - and to reduce whole collections of thoughts to be on one artificial side or the other. I can believe in being hard on crime, and legalizing drugs at the same time. I can believe in woman's right to choose in almost all cases, and not be a left wing-nut - even be Christian. I can be that and really not care at all what you do with your junk (or how you name how you identify sexually) - as long as you're not forcing it on me. I can believe in climate change, but also believe in fiscal responsibility. No one represents me - which IS the problem - and whether you see me leaning one way or the other depends on the topic, I suppose. I suspect that lack or representation is most people's problem..the vain hope that one or the other partisan side is a little better has to be a disappointment in the end. At least I don't shoot people in the face, or even threaten to - or use bike locks to commit battery. Obviously a glance in the mirror really bent some troll outa shape. I feel sorry for them, that bitterness at what they look like there must really burn. Me, I can smile. I don't even have to feel like shooting someone in the face is an answer to anything.

    --
    Why guess when you can know? Measure!
  12. Re:It's time to shoot Fox News faggots in the face by DCFusor · · Score: 1

    Obviously this place isn't completely free of a sense of humor. Does that work for you?

    --
    Why guess when you can know? Measure!
  13. Re:It's time to shoot Fox News faggots in the face by DCFusor · · Score: 1

    Oh, I see, you think Fox isn't partisan. Got it. Excuse me while I clean off my keyboard.

    --
    Why guess when you can know? Measure!
  14. Re:Any actual evidence this time? by liquid_schwartz · · Score: 1

    Yep, it's basically the definition of loser at least in my book. If it's always someone else's fault, you're a loser.

    That sums up all of the aggrieved college majors and many a liberal.

  15. Honest business doesn't need trade secrets by edris90 · · Score: 1

    If you plan on your information being compromised in the first place then you don't have to bother with security. If your business depends on hiding information, and your business should not receive protection by society. It is not in the interests of the people to allow information hoarding by large business

  16. Re:Any actual evidence this time? by gweihir · · Score: 1

    Obviously what I think is very relevant to you or you would not have bothered to answer. A nice failure on your part that provides a good estimator for your level of rationality.

    Also, what makes you think China is spying because it needs to? I think it spies on US businesses because it is _easy_. Incidentally, the US does a lot of economic espionage as well and has been doing so for a long, long time, even if the NSA does not admit it openly. Does the US do that spying because it needs to?

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  17. Re:Any actual evidence this time? by gweihir · · Score: 1

    Also most conservatives. Just look at the current moron-in-chief: Nothing is ever his fault.

    People that recognize their mistakes and learn from them generally do not go into or care much about politics. Politics is a dirty and corrupted field because it does not care about facts, ethics and rationality, and at the same time lies egregiously about that. Unless the human race manages to overcome politics (and with that greed for power), it is what will kill it. I am not hopeful.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  18. quit hiring spies by WindBourne · · Score: 1

    Seriously, if a company is high-tech, or it is known that CHina is interested in you, quit hiring ppl that will steal from you. You have the RIGHT to protect your IP.

    --
    I prefer the "u" in honour as it seems to be missing these days.
  19. Re:Any actual evidence this time? by DCFusor · · Score: 1

    I often agree with you gweihr, so I bothered to respond.
    Um, he's just one guy, and anything but a dictionary conservative. Not "most conservatives". Most of whom don't like being lumped in with neocons (both parties' neocons are the war and bribe party), the wing-nut radicals (which both parties have), or the "in name only" sorts who say whatever to get elected and then do whatever their corporate sponsors tell them or whatever they think will bring home the pork or bring in the votes by whatever other method. No one seems to retire from Congress poor - even people in super poor districts live in super mansions "somehow". I can point to plenty of examples, I happen to know more from D but I suspect that's just a filter due to how I got my info. My experience of corruption is that it's very bipartisan indeed, and when the parties agree on something, you should run.
    Which is why they never get around to turning over that rock - they're all under it themselves.
    Guess I'm pushing my luck trying to use the dictionary definition of the word conservative here - just like the word "hacker" it's been utterly corrupted (hacker used to mean good with computers, now it means black hat, for example). Liberal, same deal...utterly not liberal nowdays. I'm more liberal than most self-identified liberals these days, but am a conservative! I don't tell people what to think, I do try to teach them HOW.
    FWIW, the huge majority of the righties I know (and this is a hard-right county in SWVA) - simply were disgusted with DC and wanted it to burn down, which is why they voted for Trump. Not because they like him - and they like him less now, but with what the other guys have done, are going to vote for him again...because they've gotten worse quicker yet. Except for that Pai guy, who none of us can figure why he's not been fired yet - for political bonus points. The telecom lobby must be spending rich these days, and like I said, corruption is fully bipartisan. Sure, the D's and the R's slightly favor different money sources...but there's a crap ton of overlap there and little difference when it comes to big biz vs mom and pop. $Big has won 100% of what it wants since I started watching close, in around '64. No matter who held the reins...or reigned, depending on how you like to say that.

    --
    Why guess when you can know? Measure!
  20. Re:Any actual evidence this time? by gweihir · · Score: 1

    I should add that from an European perspective, both Republicans and Democrats are conservatives...

    The problem is, however, not being conservative, the problem is not taking responsibility for your actions and mistakes. Decent people have gotten really rare. The few remaining ones you find all over the place.

    --
    Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
  21. Re:Any actual evidence this time? by DCFusor · · Score: 1

    Couldn't agree more. During my time on earth, it's gone from "don't do wrong, because it's wrong" to "don't do wrong, you might get caught". Give up the inner belief in right and wrong...you're toast.
    Heck, in a better world, for awhile, it was "do right, increase happiness - what goes around comes around".
    And yeah, accountability...largely missing. On this side of the pond, one side more loudly blames others for "everything", but almost no one is actually taking responsibility. And that's kinda the key. Those two things are what the decline are really based on.

    --
    Why guess when you can know? Measure!