Lan Lee, an American, and Yuefei Ge, who is Chinese, are accused of stealing trade secrets from their employer, NetLogics Microsystems, and a second company, the Taiwan Semiconductor Manufacturing Corporation. The two Silicon Valley computing engineers, allegedly set up a business, SICO Microsystems, for the purpose of developing and marketing products using the stolen designs. They then attempted to secure funding from China's General Armaments Department and a Chinese government programme created to develop communications and laser technologies for the military.
The indictment accuses Lee, 42, of Palo Alto, and Ge, 34, of San Jose, of orchestrating the computer-chip plot so they could go into business with the Chinese military.
The men, who have been released on bail of $300,000 each, are both charged with two counts of economic espionage, two counts of theft of trade secrets and one count of conspiracy. They face up to 15 years in jail and a $500,000 fine if convicted. (Source: Catherine Elsworth in Los Angeles, Telegraph.co.uk, Sep 27, 2007).