The U.S. International Trade Commission voted on December 30, 2025 to launch an investigation into Samsung Electronics and two of its customers, Google and Super Micro, after Netlist, Inc. filed a complaint on September 30, 2025. The complaint alleges that Samsung’s DDR5 memory products infringe six of Netlist’s patents—U.S. Patent Nos. 12,737,366; 10,025,731; 10,268,608; 10,217,523; 9,824,035; and 12,308,087— and seeks exclusion and cease‑and‑desist orders that would bar the importation of the alleged infringing products into the United States.
Netlist’s financial performance underscores the strategic importance of the investigation. Fiscal 2024 net sales rose to $147.1 million from $69.2 million a year earlier, but the gross margin fell to 2% from 3% due to a shift toward lower‑margin resales. In the third quarter of 2025, Netlist reported net sales of $42.2 million, a gross profit of $1.8 million, and a net loss of $7.0 million. The company has also secured a $118 million jury verdict against Samsung and a cumulative $866 million in damages against Samsung and Micron over the past two years, highlighting the commercial value of its intellectual property portfolio.
If the ITC finds infringement, exclusion orders could remove Samsung’s DDR5 and high‑bandwidth memory products from the U.S. market, potentially boosting demand for Netlist’s own memory solutions and strengthening its position in the AI‑driven memory segment. The investigation also signals to other manufacturers that Netlist’s patents are enforceable, which could influence licensing negotiations and future litigation strategies.
Netlist’s CEO, C.K. Hong, welcomed the ITC’s decision, stating that the investigation “reinforces the protection of Netlist’s intellectual property and reflects the Administration’s strong support for American innovation.” The joint public‑interest comment from the U.S. Patent and Trademark Office and the Department of Justice—an unprecedented collaboration—further underscores government backing for the company’s enforcement efforts.
The investigation represents a significant regulatory development for Netlist, Samsung, Google, and Super Micro, with potential implications for supply chains, pricing, and market share in the rapidly growing DDR5 and high‑bandwidth memory markets.
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