Chip Patent Lawsuit
Taiwan’s DRAM chip maker ProMOS Technologies has sued Samsung Electronics for semiconductor patent infringement in the U.S. It is said that the containment on Samsung will grow further by filing a suit for infringement on several patents related to semiconductor technologies, which are used in practically all of the company’s products such as smartphones and tablet, desktop and notebook computers.
According to Samsung Electronics on Nov. 22, ProMOS filed a lawsuit with the U.S. District Court for the District of Delaware last month against Samsung Electronics, Samsung Semiconductor, Samsung Austin Semiconductor and Samsung Electronics America, claiming that they have infringed on six patents, including the charging technology for detection in DRAM chips.
The total amount of the claimed litigation value has not been confirmed, but it will be costly, since products under dispute are smartphones, tablet, desktop and notebook computers, smart TVs and monitors.
Economic industry sources believe that the case is a hindrance on Samsung Semiconductor. As Samsung has reported an increase in its market share and profits in the DRAM market, the competitor is trying to put some brakes on and steal Samsung’s fruit through the lawsuit. According to DRAMeXchange, Samsung has a 44.9 percent share in the DRAM market this year, up 5.3 percentage points from last year. The company also posted 9.99 trillion won (US$8.56 billion) in operating profits in the semiconductor sector as of the third quarter, showing a significant increase from 8.78 trillion won (US$7.59 billion) last year and 6.89 trillion won (US$5.96 billion) in 2013.
In fact, Samsung Electronics has been sued for three patent infringements, including already by ProMOS, in the semiconductor sector this year alone. The Seoul Economic Daily said that Daniel L. Flamm ScD brought patent infringement suits against Samsung’s semiconductor products in the U.S. in July. Raytheon, the U.S.-based defense contractor, raised a suit in a Texas court against Samsung Electronics, Samsung Semiconductor, Samsung Electronics America and Samsung Telecommunications America in March for infringing on a patent related to its small electrical equipment production process.
Samsung Electronics did not face any patent litigation in the semiconductor sector last year, but did face three lawsuits this year alone.
There is a growing tendency for global competitors to check and chase domestic semiconductor companies, including Samsung. China’s Tsinghua Unigroup recently announced that it will invest 300 billion yuan (US$46.78 billion or 54.1 trillion won) in the next five years to become one of the top three semiconductor producers in the world. The Chinese company will focus on NAND flash memory products, which will lead to fierce competition with Samsung Electronics, which is the number one company in this sector. Intel of the U.S. has also shown its intention to enter the memory semiconductor market again.