Taiwan's TSMC, the world's largest semiconductor foundry, is under investigation by the U.S. International Trade Commission (ITC) for patent infringement. If the allegations are upheld, imports of certain semiconductors into the U.S. could be restricted.
On June 10, U.S. media outlet Axios reported that Irish companies Longitude Licensing and Malin Semiconductor have filed a complaint with the ITC, claiming that semiconductors produced using TSMC's advanced processes infringe on their patents. The ITC initiated a Section 337 investigation based on this complaint in March of last year.
The Section 337 investigation is a procedure to determine whether imported products violate intellectual property rights. If infringement is found, the ITC can issue orders to ban imports or halt sales of the affected products.
Companies including Apple, Broadcom, Qualcomm, Lenovo, Motorola, and OnePlus are also included in the investigation. Axios noted that since the disputed semiconductors are produced using TSMC's advanced processes, TSMC is at the center of the case.
Longitude Licensing and Malin Semiconductor are subsidiaries of IPValue Management, owned by the U.S. private equity firm Vector Capital. Malin Semiconductor reportedly acquired some patents from TSMC's competitor, Taiwan's UMC, in 2021.
An ITC administrative law judge is expected to issue a preliminary ruling later this month, with a final decision anticipated in October.
In U.S. political circles, opinions are divided. Four Republican lawmakers sent a letter to ITC Chair Amy Kapfer on May 22, urging that imports of foreign semiconductors that infringe on patents should be blocked. They argued that TSMC should not receive special treatment due to its strategic importance in the U.S. semiconductor supply chain.
In contrast, Democratic lawmakers from Arizona, where TSMC is building a factory, warned that actions affecting TSMC could burden U.S. semiconductor production, artificial intelligence development, defense systems, and the local economy.
TSMC has announced plans to invest a total of $165 billion in expanding its semiconductor production facilities in Arizona. The company maintains that it complies with all relevant laws and regulations in its operating regions.
The Taiwanese Ministry of Economic Affairs stated, "As the proceedings are ongoing, we respect the relevant processes and will monitor the situation, providing support if necessary."
* This article has been translated by AI.
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