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Former LG.Philips LCD employees stole CF technology for job offers in Taiwan

Two former employees of LG.Philips LCD have been arrested for attempting to sell TFT-LCD color-filter (CF)-related technology to a Taiwan-based firm in exchange for jobs, according to reports from South Korea-based JoongAng Daily and Korea Times.

The two downloaded data for production of sixth-generation (6G) CFs from a server at LG.Philips LCD. The company has invested 370 billion won (about US$355 million) to develop the technology. According to Korea Times, the theft could have cost the company 1.5 trillion won (about US$1.2 billion).

A former researcher at the company was also indicted, without being detained, for his involvement, according to the Korea Times.

With help from the president of a local venture firm that worked with LG.Philips LCD, they were planning to offer 35,000 internal files to an unidentified Taiwanese maker in return for jobs, the Korea Times and JoongAng Daily reported. “Prosecutors said the three were offered new jobs in Taiwan, each with an annual salary of 200 million won (about US$192,000),” according to the Joong Ang Daily.

Nevertheless, Taiwan panel and CF makers that have production plans for 6G CFs all denied being involved in this incident.

Currently, Taiwan-based panel makers that have 6G CF production plans include AU Optronics (AUO), Chunghwa Picture Tubes (CPT), Quanta Display and HannStar Display, as well as CF makers Allied Material Technology Corporation (AMTC) and Sintek Photronic.

Most Taiwan TFT-LCD-related technology was transferred from Japan, but Taiwan companies started to recruit more engineers from South Korea once Japan-based makers switched their focus from large-size TFT-LCD panel production to smaller-size panel production, according to sources.

LG.Philips LCD started volume production of 6G panels this September, and the company makes panels for 32-, 37- and 42-inch LCD TVs, as well as LCD monitors, according to a company press release. LG.Philips LCD’s 6G panels use CFs made mostly in-house.

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