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Korean chipmakers face greater risk as U.S. trade commission opens patent dispute probe into SK hynix

Published: 31 Mar. 2026, 07:00

SK hynix's headquarters in Icheon, Gyeonggi is seen on Jan. 29. [YONHAP]

The U.S. International Trade Commission (ITC) has launched an investigation into a patent dispute involving SK hynix’s high bandwidth memory (HBM), adding to legal risks facing Korean chipmakers.

The ITC decided on Thursday to investigate an alleged violation of Section 337 of the Tariff Act after U.S.-based nonpracticing entity (NPE) Monolithic 3D filed a complaint against SK hynix and Japan’s Kioxia, according to the U.S. Federal Register on Monday.

Monolithic 3D alleged that SK hynix and Kioxia infringed patents related to HBM and NAND flash. It asked the ITC to ban imports, distribution and sale of the products in the United States.

NAND flash is a type of nonvolatile storage technology that retains data without power, commonly used in devices for high-density, low-cost data storage.

HBM is a key infrastructure component for AI data centers, a priority of the U.S. administration, SK hynix said in a submission to the ITC on March 3.

The company also warned that an import ban could lead to supply shortages and sharp price increases, harming the public interest.

A memory module developed by SK hynix is on display at the 2026 CES exhibition at the Venetian Convention Center in Las Vegas on Jan. 9. [YONHAP]

Monolithic 3D countered that “concerns over supply shortages are exaggerated,” claiming that competitors such as Samsung Electronics and Micron could ramp up production to fill any gap.

The case has raised concerns in the semiconductor industry that Korean chipmakers are increasingly becoming targets of so-called “patent troll” NPEs, especially as the Donald Trump administration strengthens intellectual property (IP) protection for key technologies.

NPEs typically generate revenue by acquiring patents and demanding licensing fees or filing lawsuits against companies that use related technologies.

Korean companies faced 610 patent infringement lawsuits between 2020 and 2025, with 553 cases — or 90.6 percent — filed in the United States, according to Korea’s Ministry of Intellectual Property.

SK hynix's high-bandwidth memory (HBM) product is on display at the GTC 2026 exhibition in California on March 17. [YONHAP]

The majority, 485 cases or 79.5 percent, were in the electrical and electronics sector. Of 528 lawsuits involving the top 10 companies, 400 were brought forth by NPEs.

Samsung Electronics was the most targeted, facing 350 cases, including 259 filed by NPEs. LG and Hyundai Motor followed with 111 and 31 cases, respectively.

The trend has become more pronounced since Trump returned to office at the beginning of 2025. The United States had previously curbed excessive litigation through the inter partes review (IPR) system, which allows challenges to patents and their invalidation.

However, since the appointment of new U.S. Patent and Trademark Office Director John Squires in September last year, the threshold for initiating IPR reviews has risen, and rejection rates have increased from about 30 percent to around 80 percent.

Samsung Electronics is also engaged in a separate HBM-related patent dispute with U.S.-based NPE Netlist, founded by a former LG subsidiary executive, Hong Chun-ki, since May last year.

A display for Korean chip giant SK hynix's 16-layer HBM3E chip is seen at the SK AI Summit in Seoul on Nov. 4, 2024. [AFP/YONHAP]

“Disputes with NPEs are nothing new, but given that HBM has emerged as a strategic national asset, any unfavorable ruling in these patent cases could have significant repercussions,” said a semiconductor industry official.

Netlist has already secured favorable outcomes in disputes with Korean firms. In 2021, it reached a $40 million settlement with SK hynix, and in November 2024, it won a $118 million damages verdict against Samsung Electronics in a Texas federal court.

The Korean government is also stepping up its response. The Ministry of Intellectual Property has established a dedicated unit for advanced technologies, such as semiconductors and biotechnology, to monitor NPE trends and has increased support for small and mid-sized firms facing disputes from 200 million won ($131,900) to 300 million won per year.

“A pan-government response is needed for patent litigation involving our semiconductor companies in the United States,” Prime Minister Kim Min-seok said on March 20.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE YOUNG-KEUN [[email protected]]