A Tianjin University Professor Hao Zhang was arrested last weekend when he arrived in the United States from the People’s Republic of China and charged with economic espionage, officials said.“The conduct alleged in this superseding indictment reveals a methodical and relentless effort by foreign interests to obtain and exploit sensitive and valuable U.S. technology through the use of individuals operating within the United States,” said FBI Special Agent in Charge David J. Johnson. “Complex foreign-government sponsored schemes, such as the activity identified here, inflict irreversible damage to the economy of the United States and undercut our national security. The FBI is committed to rooting out industrial espionage that puts U.S. companies at a disadvantage in the global market.”
According to the indictment, Chinese nationals Wei Pang and Hao Zhang met at a U.S. university in Southern California during their doctoral studies in electrical engineering.
While there, Pang and Zhang conducted research and development on thin-film bulk acoustic resonator or FBAR technology under funding from U.S. Defense Advanced Research Projects Agency.
After earning their doctorate around 2005, officials said Pang accepted employment as an FBAR engineer with Avago Technologies in Colorado. Zhang accepted employment as an FBAR engineer with Skyworks Solutions Inc. in Massachusetts.
The stolen trade secrets alleged in the indictment belong to Avago or Skyworks.
Avago is a designer, developer and global supplier of FBAR technology, which is a specific type of radio frequency filter. Throughout Zhang’s employment, Skyworks was also a designer and developer of FBAR technology. FBAR technology is primarily used in mobile devices like cellular telephones, tablets and GPS devices.
FBAR technology filters incoming and outgoing wireless signals so that a user only receives and transmits the specific communications intended by the user. Apart from consumer applications, FBAR technology has numerous applications for a variety of military and defense communications technologies, officials stated.
- In 2006 and 2007, Pang, Zhang and other co-conspirators prepared a business plan and began soliciting Chinese universities and others, seeking opportunities to start manufacturing FBAR technology in China.
- Through efforts outlined in the superseding indictment, Pang, Zhang and others established relationships with officials from Tianjin University.
- Tianjin University is a leading Chinese Ministry of Education University located in the Chinese and one of the oldest universities in China.
- As set forth in the indictment, in 2008, officials from Tianjin University flew to San Jose, California, to meet with Pang, Zhang and other co-conspirators.
- Shortly thereafter, Tianjin University agreed to support Pang, Zhang and others in establishing an FBAR fabrication facility in China. Pang and Zhang continued to work for Avago and Skyworks in close coordination with Tianjin University.
- In mid-2009, both Pang and Zhang simultaneously resigned from the U.S. companies and accepted positions as full professors at Tianjin University.
- Tianjin University later formed a joint venture with Pang, Zhang and others under the company name ROFS Microsystem intending to mass produce FBARs, according to authorities.
- Pang, Zhang and other co-conspirators stole recipes, source code, specifications, presentations, design layouts and other documents marked as confidential and proprietary from the victim companies and shared the information with one another and with individuals working for Tianjin University, officials stated.
- The stolen trade secrets enabled Tianjin University to construct and equip a state-of-the-art FBAR fabrication facility, to open ROFS Microsystems, a joint venture located in China state-sponsored Tianjin Economic Development Area , and to obtain contracts for providing FBARs to commercial and military entities.
The six indicted defendants are citizens of China:
- Hao Zhang, 36, is a former Skyworks employee and a full professor at Tianjin University. Zhang is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets.
- Wei Pang, 35, is a former Avago employee and a full professor at Tianjin University. Pang is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets.
- Jinping Chen, 41, is a professor at Tianjin University and a member of the board of directors for ROFS Microsystems. Chen is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.
- Huisui Zhang (Huisui), 34,studied with Pang and Zhang at a U.S. university in Southern California. He received a Master’s Degree in Electrical Engineering in 2006. Huisui is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.
- Chong Zhou, 26, is a Tianjin University graduate student and a design engineer at ROFS Microsystem. Zhou studied under Pang and Zhang, and is charged with conspiracy to commit economic espionage, conspiracy to commit theft of trade secrets, economic espionage and theft of trade secrets.
- Zhao Gang, 39, is the General Manager of ROFS Microsystems. Gang is charged with conspiracy to commit economic espionage and conspiracy to commit theft of trade secrets.