The United States has launched a memory chip patent probe targeting SK hynix after Samsung Electronics.
The U.S. International Trade Commission (USITC) said on the 30th (local time) via the Federal Register that it has opened an investigation into potential violations of Section 337 of the Customs Act over certain NAND and DRAM products by SK hynix and Japan's Kioxia. The probe follows a complaint filed by Monolithic 3D, a U.S. non-practicing entity (NPE).
Monolithic 3D claimed SK hynix imported and sold in the United States memory chips that infringe its patents. Those surveyed include not only 3D NAND but also high bandwidth memory (HBM) DRAM, a core component for artificial intelligence (AI) servers.
The probe is currently at the initiation stage, and no violation has been determined. A final decision is expected after a hearing by an administrative law judge (ALJ) and deliberation by the commission.
A Section 337 investigation, unlike ordinary civil litigation, is a trade remedy process that can bar the import of the products into the United States if a violation is found. In addition to an exclusion order, measures to halt sales of products already brought in are also possible.
The industry is watching the potential fallout closely, particularly because HBM is a key component of AI data centers. If it leads to sanctions, it could affect the broader server and cloud industries.
The case also aligns with a recent trend of more aggressive actions by NPEs in the United States. NPEs generate revenue by acquiring patents and pursuing lawsuits and licenses, and analysts say they have recently been focusing on Korean semiconductor corporations.
In fact, U.S. semiconductor corporations Netlist secured a settlement of about $40 million against SK hynix in 2021, and in Nov. 2024 won a damages verdict of about $118 million against Samsung Electronics.
The government has also moved to respond. The Ministry of Intellectual Property plans to build a preemptive response system by analyzing NPE activity in advance and expanding patent dispute monitoring regions from the United States to Europe and beyond. Prime Minister Kim Min-seok also recently emphasized at the Presidential Council on Intellectual Property the need for a whole-of-government response to semiconductor patent lawsuits in the United States.