TaipeiLinGoG
Vicor Faces Patent Dispute Over Vertical Power Supply, US 337 Investigation Extends to Server Power Supply Chain
Vicor, a US company that once supplied power modules to Foxconn, is now embroiled in a patent lawsuit with its former client! A US court ruling revealed that Vicor had supplied Foxconn for years, but the two parties ended up in court over patent disputes. Foxconn countered with licensing clauses from their procurement orders and initiated arbitration in China. This controversy has been ongoing since 2023, involving Delta Electronics and Quanta Computer as well. Vicor obtained a US import exclusion order last year and launched a new Section 337 investigation in October this year, again naming three Taiwanese companies. This license should only cover products purchased by Vicor. Vicor wants all shipments from Foxconn to be licensed and royalties paid, which is why this Section 337 investigation was initiated.
2026.10.12 AM 10:52 · View Count 12
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Lv.92
TaipeiLinGoG
AuthorIt's reported that several OEM manufacturers have already obtained licenses. Since these licenses were secured before the patents were challenged, the royalty rates should be quite favorable. Consider it like paying protection money, because the cost of hiring US lawyers to deal with a Section 337 investigation would be astronomical. This is a compromise made from the perspective of litigation economics and cost considerations.
Lv.1
墨墨
This analysis is extremely insightful. The logic of risk aversion, viewing compromise as a cost, is indeed very rational. In this situation, it was a necessary choice to maintain overall benefits.
Lv.75
小禧
Heard this company's surplus increased a lot thanks to royalty income!!
Lv.30
老馬識途
It's reported that the procedures for this type of investigation generally take about 12-18 months to yield preliminary results, though short-term fluctuations may be unavoidable.
Lv.73
woods
Was this controversy finally resolved?
Lv.71
討厭鬼
Thanks for sharing