Compiled by Lu Silun, Reporters Zhong Huiling and Jiang Ruizhi / Taipei
Foreign media outlet Axios reported that TSMC (2330) is currently embroiled in a patent infringement lawsuit, which is being reviewed by the US International Trade Commission (ITC). Although a finding of infringement could theoretically lead to the most severe outcome—an exclusion order banning the import of the affected products into the United States—industry observers expect the impact to be limited. Such cases are not uncommon in the tech industry; past precedents show that these patent disputes often conclude with cross-licensing agreements or settlements, and rarely cause substantial disruption to a company’s product sales.
According to Axios, the investigation was initiated by Longitude Licensing and Marlin Semiconductor, two Irish patent licensing companies. Both firms operate under IPValue Management, which is owned by San Francisco-based private equity firm Vector Capital. In addition to TSMC, the lawsuit targets several other companies, including Apple and Broadcom. The administrative law judge’s initial determination on the case is expected to be released this month, with the Commission’s final decision projected for October.
The two plaintiff companies allege that the infringing chips were manufactured using TSMC’s most advanced process technologies and that the related technologies are utilized in the production of AI accelerators. The report also noted that the patents held by Marlin were acquired in 2021 from the Taiwanese foundry UMC.
Currently, UMC’s foundry business focuses primarily on mature nodes, and the foreign report did not provide further specific details regarding the plaintiffs’ infringement claims. For its part, TSMC maintained that the company complies with local laws in all countries where it operates.
The Ministry of Economic Affairs (MOEA) stated yesterday (June 11) that Taiwan’s semiconductor companies have long attached great importance to intellectual property rights. They maintain close cooperation with international customers and supply chain partners, operating in strict compliance with the law across all major global locations. The government will continue to monitor subsequent developments, stay in close communication with relevant companies, and provide appropriate assistance when necessary to ensure the stable operation and supply chain resilience of Taiwan’s semiconductor industry in the global market.
Axios pointed out that several Republican lawmakers sent a letter to the ITC in late May, demanding a halt to the import of any foreign chips that infringe upon US patent rights. They argued that strict enforcement of these regulations is vital to maintaining US competitiveness, adding that even strategically important companies should not receive special treatment.
However, earlier prior to that, Democratic senators and representatives from Arizona had already voiced concerns, warning that any actions impacting TSMC could disrupt semiconductor production, AI development, defense system operations, and Arizona’s local economy.
(From the June 12, 2026 issue of the Economic Daily News, Page A3)