Silicon Valley chip engineers face federal theft charges

Three engineers working in Silicon Valley have been indicted in the United States on allegations of conspiring to steal sensitive chip design trade secrets from Google and other technology companies, in a case that federal prosecutors say underscores mounting insider threats to the semiconductor industry. The US Department of Justice announced that Samaneh Ghandali, 41, and her husband Mohammadjavad Khosravi, also known as Mohammad Khosravi, along with […] The article Silicon Valley chip engineers face federal theft charges appeared first on Arabian Post.

Silicon Valley chip engineers face federal theft charges
Three engineers working in Silicon Valley have been indicted in the United States on allegations of conspiring to steal sensitive chip design trade secrets from Google and other technology companies, in a case that federal prosecutors say underscores mounting insider threats to the semiconductor industry.

The US Department of Justice announced that Samaneh Ghandali, 41, and her husband Mohammadjavad Khosravi, also known as Mohammad Khosravi, along with a third engineer based in Northern California, were arrested following a grand jury indictment. Authorities allege the group conspired to obtain proprietary information related to advanced processor design, including data tied to security architecture and cryptographic protections used in modern computing systems.

According to court documents, the accused worked in highly specialised engineering roles with access to confidential design materials. Prosecutors contend that the defendants copied and retained sensitive files without authorisation, intending to use them to benefit an external venture and potentially a foreign-linked enterprise. The indictment includes counts of conspiracy to commit theft of trade secrets and economic espionage.

Federal officials described the case as part of a broader effort to counter attempts to extract valuable intellectual property from leading US technology firms. The semiconductor sector is widely regarded as strategically vital, underpinning everything from artificial intelligence systems and data centres to military hardware and telecommunications networks. As chip design has become more complex, firms have invested heavily in proprietary architectures and security features that give them a competitive edge.

Google, one of the companies identified in the charging documents, has long maintained advanced internal safeguards to protect its intellectual property, particularly in areas such as custom silicon development for cloud infrastructure and consumer devices. Over the past decade, the company has expanded its in-house chip capabilities, including the design of specialised processors to accelerate machine learning workloads. While the indictment does not allege wrongdoing by Google itself, it places the company at the centre of a dispute over the protection of cutting-edge engineering research.

The alleged scheme highlights vulnerabilities associated with insider access. Industry analysts have warned that while companies focus heavily on defending against external cyber intrusions, risks posed by employees or contractors with legitimate credentials remain acute. Intellectual property theft cases involving engineers in the technology sector have increased over the past several years, often intersecting with geopolitical tensions and export control restrictions.

The Department of Justice has stepped up enforcement actions related to trade secrets and semiconductor technologies amid intensifying global competition over chip supply chains. Washington has imposed tighter export controls on advanced chips and manufacturing equipment, particularly in relation to China, citing national security concerns. At the same time, lawmakers have directed billions of dollars towards domestic semiconductor production through legislation such as the CHIPS and Science Act, reflecting the strategic importance attributed to the industry.

Legal experts note that trade secret cases can be complex, requiring prosecutors to demonstrate not only that information was confidential and economically valuable but also that defendants knowingly misappropriated it. Convictions for economic espionage can carry substantial prison sentences and financial penalties. The accused in this case are expected to appear in federal court in California, where they will have the opportunity to contest the charges.

Publicly available filings indicate that investigators traced the alleged misconduct through digital forensics and internal company monitoring systems. Technology companies routinely deploy logging tools to track downloads and transfers of sensitive data, particularly when employees depart or change roles. In several high-profile cases over the past decade, suspicious file transfers have triggered internal reviews that later led to federal investigations.

The semiconductor design ecosystem in Silicon Valley is tightly interconnected, with engineers frequently moving between start-ups and established firms. While this mobility has helped fuel innovation, it has also complicated efforts to safeguard proprietary information. Companies typically rely on non-disclosure agreements, restricted access protocols and compartmentalised project structures to reduce exposure.

Security specialists say the growing value of processor-level innovations has made chip designers attractive targets for both corporate competitors and state-backed actors. Modern processors incorporate intricate security modules designed to defend against hardware-based attacks and side-channel exploits. Details of these architectures can be particularly sensitive, as they reveal potential vulnerabilities or defensive mechanisms embedded at the silicon level.

Attorneys representing the defendants have not publicly commented in detail on the allegations. Under US law, those charged are presumed innocent unless proven guilty beyond a reasonable doubt. Court proceedings are expected to examine the nature of the information at issue and whether it meets the statutory definition of a trade secret.

The article Silicon Valley chip engineers face federal theft charges appeared first on Arabian Post.

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