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Federal prosecutors have charged three Silicon Valley engineers with allegedly orchestrating a multi-year effort to obtain and transfer highly sensitive technology data from major U.S. firms to contacts in Iran. The indictment claims the operation involved hundreds of confidential files tied to advanced mobile processor design, encryption, and system architecture.

The defendants — all based in San Jose — were arrested and presented in federal court the same day the charges were unsealed. Authorities say the alleged conduct reflects a broader pattern of insider-driven intellectual-property risks that companies across the semiconductor ecosystem are increasingly trying to mitigate.

Who the Defendants Are

According to court filings, the three individuals held technical roles across multiple chip-focused companies. Two of them previously worked at Google before moving to another firm, while the third was employed at a semiconductor company involved in system-on-chip platform development.

Prosecutors allege the group used their legitimate workplace access to collect proprietary documents, design notes, and internal research tied to processor performance and security. The indictment also outlines their immigration statuses, noting that one defendant is a U.S. citizen, another a permanent resident, and the third was in the country on a student visa.

What Data Was Allegedly Taken

Investigators say the material included detailed information about chip security frameworks, cryptographic methods, and next-generation processor architecture. Some files were related to SoC platforms similar to those developed by Qualcomm, while others covered mobile computing technologies used widely across consumer devices.

System-on-chip technology is central to modern electronics because it integrates CPUs, GPUs, memory controllers, and connectivity components into a single power-efficient design. Because of the high R&D costs and competitive value of these designs, prosecutors argue the stolen data carried substantial economic significance.

How the Activity Was Detected

The case began after internal security monitoring at Google flagged unusual data-handling patterns. The company says automated alerts identified irregular file access and transfers, prompting a deeper review and eventual referral to law enforcement.

Authorities allege that, after access was restricted, one defendant signed a statement denying any improper sharing of information. Investigators later claimed digital evidence contradicted that assertion, including searches about deleting messages and record-retention policies.

Alleged Methods to Conceal the Transfers

Court documents describe a series of steps allegedly taken to avoid detection. Prosecutors say files were routed through encrypted messaging channels and copied onto multiple devices, including personal laptops and phones.

Investigators also claim the defendants photographed screens displaying proprietary data, potentially to bypass corporate monitoring systems that track downloads and file transfers. In total, authorities estimate that several hundred images and documents were involved, some accessed while the individuals were abroad.

The investigation is being led with support from the Federal Bureau of Investigation, which says the tactics demonstrate a deliberate attempt to obscure the movement of sensitive information.

Legal Exposure and Potential Penalties

Each defendant faces multiple counts, including conspiracy, theft of trade secrets, attempted theft, and obstruction of justice. If convicted on all counts, prosecutors say the penalties could reach:

• Up to 10 years in prison per trade-secret charge
• Up to 20 years for obstruction-related offenses
• Financial penalties that may total hundreds of thousands of dollars

Legal experts note that sentences in similar cases often depend on the assessed economic impact and whether the information was ultimately used or distributed.

Broader Industry Implications

The case underscores growing concerns within the semiconductor and AI hardware sectors about insider threats. As chip design cycles become more expensive — often exceeding billions of dollars in development costs — companies are expanding monitoring, zero-trust access controls, and forensic auditing to safeguard intellectual property.

For the broader tech industry, the incident highlights how workforce mobility, global collaboration, and remote access can increase both innovation and risk. Analysts say firms are likely to continue tightening data-loss-prevention systems and employee access policies as geopolitical tensions elevate the stakes around advanced technology.