Washington:The U.S. International Trade Commission (USITC) has initiated a Section 337 investigation targeting several Taiwanese technology companies, including Foxconn, Delta Electronics Inc., and Quanta Computer Inc. Taiwan's Ministry of Economic Affairs (MOEA) has expressed readiness to provide assistance if required.
According to Focus Taiwan, the USITC announced that it voted to proceed with an investigation under Section 337 of the U.S. Tariff Act of 1930. This probe concerns certain vertical power delivery systems, related components, and computing devices that incorporate these systems. The investigation involves 20 companies from Taiwan, China, Germany, and the United States, although the commission has yet to reach a conclusion on the case's merits.
The MOEA's International Trade Administration (ITA) reported that the investigation involves power delivery technology used in artificial intelligence (AI) servers. Alongside the Taiwanese companies, China-based Luxshare Precision Industry Co. and Foxconn Industrial Internet Co. are also named in the investigation.
The ITA explained that the investigation originates from a complaint filed by Massachusetts-based power technology company Vicor Corp. on September 9, with an additional filing on the following day. Vicor claims that the technology in question infringes its patents when imported into or sold in the U.S., seeking a limited exclusion order to block such imports and cease-and-desist orders to halt their U.S. sale.
The ITA noted that Section 337 investigations generally last between 12 to 16 months. Should the complainant succeed, the USITC can issue orders to exclude and stop the sale of the affected products in the U.S. market. The case is characterized as a patent dispute between private entities under U.S. Section 337 procedures, and the government has committed to respecting the legal process, staying in contact with the companies involved, and offering support if needed.
The USITC has stated that an administrative law judge will be appointed to conduct a hearing and make an initial determination on any Section 337 violations before the commission itself reviews the findings. A target date for completing the investigation will be set within 45 days of its initiation.
Any orders issued would be effective immediately and become final after 60 days unless the U.S. Trade Representative disapproves them on policy grounds. Delta Electronics has affirmed its commitment to intellectual property rights and legal compliance, indicating it will engage in the legal process to protect its interests. The company, however, refrained from further comments due to the ongoing legal proceedings, noting its products are not currently impacted by the investigation.
