Belgium Arrests Chinese Dual National on Suspicion of Semiconductor Technology Espionage

[Financial News]  

Belgium announced on July 7, local time, that it had arrested a Belgian-Chinese dual-national researcher suspected of attempting to steal semiconductor technology. The suspect is accused of trying to transfer the technology to a Chinese competitor.
The Belgian Federal Prosecutor’s Office said in a statement that the arrest was part of an investigation into "espionage, participation in a criminal organization, misuse of company assets, and the unlawful disclosure of company secrets."
The Financial Times (FT) forecast that the incident would further intensify tensions between the European Union (EU) and China, which are already clashing over advanced technology.

Belgian prosecutors said the arrested Belgian-Chinese dual national was a 52-year-old man who had been a senior researcher at Belgan. Belgan was an advanced gallium nitride (GaN) semiconductor foundry. By using gallium nitride instead of silicon, the conventional core material for semiconductors, the technology significantly improved power efficiency and heat resistance. The company had strong prospects as a key player in next-generation power semiconductors and artificial intelligence (AI) infrastructure, but it went bankrupt in July 2024. More than 400 jobs were lost.
The prosecutor’s office said the man also served as a director of a Chinese company engaged in manufacturing activities similar to those of Belgan. The company was established several months after he joined Belgan. Prosecutors added that the investigation revealed that specialized intellectual property and trade secrets related to GaN semiconductors had been unlawfully transferred abroad. The technology is used in a wide range of fields, including electric vehicles, aviation, and the military.
The man was arrested on May 10 while attempting to board a flight from Brussels Airport to Beijing, China. He remains in custody awaiting trial.
Without disclosing details, prosecutors said police had conducted searches and seized data-storage devices and electronic communications. They added that they were also tracking a second suspect linked to the case.

Tensions between the EU and China are escalating over technology and resources.
The Dutch government has banned ASML Holding N.V. (ASML) from exporting advanced lithography equipment to China. The equipment is essential for producing advanced semiconductors.
The Netherlands has also secured temporary control over automotive semiconductor maker Nexperia. The measure followed a court ruling that a Chinese CEO posed a risk of diverting equipment and technology to his Chinese company. In retaliation, China blocked exports from Nexperia’s Chinese subsidiary to the EU.
The EU has also placed several Chinese companies on its sanctions list over allegations that they are helping Russia, which is waging war in Ukraine.
China has restricted rare-earth exports to EU member states and 14 companies, citing the possibility that the materials could be diverted for military use.
Belgium, where the industrial espionage case emerged, is on the front line of tensions between the EU and China. Brussels is home to the EU headquarters and the European Commission, as well as the headquarters and secretariat of the North Atlantic Treaty Organization (NATO).
In June, a Canadian national of Chinese origin was arrested on espionage charges at the Supreme Headquarters Allied Powers Europe (SHAPE), NATO’s top command center.
Last year, a Chinese-born aide to a far-right member of the European Parliament (EP) was sentenced to four years and nine months in prison for espionage. The aide was accused of passing confidential information to China.


[email protected] Song Kyung-jae Reporter