Washington:The U.S. International Trade Commission (USITC) has begun a Section 337 investigation targeting several Taiwanese technology companies, including Foxconn, Delta Electronics Inc., and Quanta Computer Inc. This investigation is part of an inquiry into certain vertical power delivery systems, their components, and computing devices that incorporate these systems. Taiwan's Ministry of Economic Affairs (MOEA) has expressed its commitment to offering support if required.
According to Focus Taiwan, the USITC announced that it voted to initiate this investigation under Section 337 of the U.S. Tariff Act of 1930. The investigation includes 20 companies from Taiwan, China, Germany, and the United States. The commission emphasized that no decision has been made regarding the merits of the case at this point.
The MOEA's International Trade Administration (ITA) noted that the investigation focuses on power delivery technology utilized in artificial intelligence (AI) servers. Besides the Taiwanese firms, China-based Luxshare Precision Industry Co. and Foxconn Industrial Internet Co. are also named as respondents.
The investigation was triggered by a complaint from Massachusetts-based Vicor Corp., filed on September 9, with a subsequent filing the next day. Vicor claims that the vertical power delivery systems and related products infringe on its patents when imported into or sold in the U.S. The company seeks a limited exclusion order to block imports of the accused products and cease-and-desist orders to stop their sale in the U.S.
The ITA indicated that Section 337 investigations usually take around 12 to 16 months to conclude. Should the complainant succeed, the USITC can issue exclusion and cease-and-desist orders to prevent the affected products from entering or being sold in the U.S. market.
The case is described as a patent dispute between private companies under U.S. Section 337 procedures. The government will respect the legal process, continue monitoring developments, maintain communication with the impacted companies, and provide assistance as needed.
The USITC will assign the case to an administrative law judge, who will conduct a hearing and deliver an initial determination on whether Section 337 has been violated. The commission will then conduct its review. A target date for completing the investigation will be set within 45 days after the probe's initiation.
Any remedial orders will take immediate effect and become final after 60 days unless disapproved by the U.S. Trade Representative on policy grounds.
Delta Electronics emphasized its commitment to intellectual property rights and legal compliance across jurisdictions. It plans to respond to the investigation through legal channels to protect its rights and interests. The company refrained from further comments due to the ongoing legal proceedings, noting that its products are not currently impacted by the investigation.