China Times, A5, October 11, 2026
U.S. Launches Section 337 Investigation; Delta Electronics and Foxconn Named
Rising computing demand and fierce IP competition: 20 cross-strait companies and affiliates under investigation; responses due within 20 days of notice
[By Wang Chia-yuan, compiled report]
On the 9th, the U.S. International Trade Commission (USITC) announced it was launching a Section 337 investigation into certain vertical power delivery systems and related computing equipment, involving power supply technology for artificial intelligence (AI) servers. Twenty companies and related entities are named as respondents, including Taiwanese power supply maker Delta Electronics, AI server leader Foxconn, and Quanta, as well as mainland China’s Luxshare Precision and Foxconn Industrial Internet (FII).
According to the USITC notice, U.S. power conversion technology company Vicor Corporation filed its complaint on September 9. It alleges that vertical power delivery (VPD) systems and components imported into and sold in the U.S. by several companies, as well as computing equipment incorporating the technology, infringe its patents. Vicor is seeking a limited exclusion order and a cease and desist order from the USITC.
Under the USITC list, the Taiwanese respondents include Delta Electronics, Hon Hai Precision (Foxconn), and Quanta Computer, along with related subsidiaries and affiliates. Foxconn Group’s FII and server maker Ingrasys, together with its U.S. company, are also named. Quanta’s subsidiary Quanta Cloud Technology (QCT) and its U.S. subsidiary are also within the scope of the investigation. The mainland Chinese respondents include Luxshare Precision, Dongguan Luxshare Technology, and related companies of Monolithic Power Systems (MPS) in Chengdu and Shanghai.
A U.S. Section 337 investigation is brought under Section 337 of the Tariff Act of 1930. Under the rules, respondents must submit their responses within 20 days of receiving notice after the USITC initiates the investigation. The USITC must set a target date for its final determination within 45 days, and cases are typically decided within 12 to 16 months.
The complainant, Vicor, holds a patent portfolio covering multiple areas, including power conversion control, packaging, and system architecture. The vertical power delivery systems at issue are key components used for efficient power delivery in data centers, high-performance computing, and AI servers. As global demand for computing power surges, competition over intellectual property in this field is intensifying.
This is not the first time Vicor has filed a Section 337 complaint. Vicor and Delta Electronics compete directly in some products, and the two have been engaged in patent infringement litigation before the USITC and in district courts since 2023. Foxconn was also a defendant at that time, in a case involving power converters. In May last year, Vicor and Delta Electronics mutually agreed to dismiss the related district court litigation.
However, Vicor launched a new offensive earlier this year, filing three separate lawsuits against different power module suppliers and their downstream customers. In one of them, the defendants include MPS and its customers Quanta and Wiwynn. In July this year, MPS and Delta Electronics jointly filed trade secret and patent counterclaims against Vicor in court.