NetList Inc (NLST)

[100lbStriper]

here ya go!!! Samsung Faces US Import Ban Threat as Patent Dispute Escalates Over HBM and DRAM Technology
https://www.channelnews.com.au/samsung-faces-us-import-ban-threat-as-patent-dispute-escalates-over-hbm-and-dram-technology/

Patent management entity Netlist has filed a complaint against Samsung Electronics with the U.S. International Trade Commission (ITC), alleging DRAM patent infringement and requesting a ban on imports and sales of advanced memory semiconductors, including high bandwidth memory (HBM), in the United States.

The U.S. ITC announced on November 17 that it received a complaint filed by Netlist against Samsung Electronics (including U.S. subsidiaries), Google, and Super Micro Computer.

Netlist claims Samsung’s memory semiconductors, including HBM and DDR5, infringe on its DRAM technology, requesting an investigation under Section 337 of the U.S. Tariff Act.

The provision addresses unfair trade practices, including patent infringement and can prohibit product imports through “exclusion orders” when violations are found.

Netlist specifically requested a “limited exclusion order” and “cease and desist order for patent infringement,” meaning a complete blockade of U.S. imports and sales of Samsung’s DRAM semiconductors, including HBM and DDR5, plus finished server products containing them.

This represents an escalation from Netlist’s previous court litigation focused on securing damages.

While existing lawsuits centred on compensation, the ITC complaint is a powerful pressure tool that could lead to U.S. market exclusion.

The complaint comes as Samsung successfully secured HBM3E supply for NVIDIA’s Blackwell and prepares to equip next-generation Rubin with 6th-generation HBM4.

Netlist included Samsung’s core customers, Google and Super Micro Computer to increase pressure.

Google uses Samsung’s HBM in its proprietary AI chip, the Tensor Processing Unit (TPU), while Super Micro Computer receives Samsung’s HBM supply to manufacture AI server racks.

A semiconductor industry official explained, “From the customers’ perspective, stable component supply is crucial, so they inevitably hesitate to use products that could potentially face import bans in the United States.”

The industry views Netlist as strategically targeting Samsung’s core customers to force negotiations, with the theory that successive disputes aim at a high-royalty contract, gaining credibility.

Samsung Electronics signed a DRAM technology license agreement with Netlist in 2015, but their relationship soured in 2020, leading to litigation.

Both companies are engaged in lawsuits and counter-lawsuits.

Netlist has achieved jury verdict victories totalling US$421.15 million (approximately A$630 million) in U.S. federal courts, including US$303.15 million (approximately A$455 million) in April 2023 and US$118 million (approximately A$177 million) in November 2024.

The court ruled Samsung materially breached the license agreement and had no right to use Netlist patents.

Samsung has appealed while pursuing a strategy to invalidate Netlist’s patents through Inter Partes Review (IPR) petitions with the U.S. Patent Trial and Appeal Board (PTAB), achieving some invalidation rulings.

Netlist was established in the United States in 2000 by Hong Chun-ki, a former LG Semiconductor executive.

It reached a settlement with SK Hynix in 2021 for US$40 million (approximately A$60 million) plus royalties and is currently litigating against Micron, essentially waging litigation against all three major DRAM companies.

The ITC typically decides whether to initiate a formal investigation within one month of receiving a complaint (mid-December).

If an investigation begins, a final decision is expected around mid-2027.