USITC Initiates Section 337 Investigation Involving Major Taiwanese Companies

Washington:The U.S. International Trade Commission (USITC) has commenced a Section 337 investigation targeting several Taiwanese technology firms, including Foxconn, Delta Electronics Inc., and Quanta Computer Inc. Taiwan's Ministry of Economic Affairs (MOEA) has stated it will offer assistance as needed.

According to Focus Taiwan, the investigation was launched following a vote by the USITC to examine certain vertical power delivery systems and related components used in computing devices. The probe involves 20 companies from Taiwan, China, Germany, and the United States.

The MOEA's International Trade Administration (ITA) noted that the investigation is related to power delivery technology used in artificial intelligence (AI) servers. Besides the Taiwanese firms, China-based companies Luxshare Precision Industry Co. and Foxconn Industrial Internet Co. are also included as respondents.

The investigation originated from a complaint by Massachusetts-based Vicor Corp., filed on September 9, with a supplemental filing the next day. Vicor claims that the technology in question infringes on its patents when imported or sold in the U.S., and seeks a limited exclusion order to block these imports, along with cease-and-desist orders against their sale.

The ITA explained that Section 337 investigations typically last 12 to 16 months. A favorable outcome for the complainant could result in exclusion and cease-and-desist orders, preventing the entry or sale of the disputed products in the U.S.

The USITC has assigned the case to an administrative law judge for a hearing and initial determination on any Section 337 violations. The commission will then review the findings and set a completion target date within 45 days of the investigation's commencement.

Delta Electronics affirmed its commitment to intellectual property rights and legal compliance, stating it will defend its rights through the appropriate legal channels. The company indicated its products are currently unaffected by the probe but declined further comment due to ongoing legal proceedings.