Why this memory chip company has become problem for Samsung

Netlist has successfully secured a USD 118 million dollar verdict against Samsung for patent infringement. Additionally, the company has also triumphed in a lawsuit against Micron concerning similar patent issues.

A federal jury in Marshall, Texas, awarded computer memory company Netlist USD 118 million in damages from Samsung Electronics in a patent lawsuit concerning technology that enhances data processing in high-performance memory products. This verdict follows a previous ruling in which Netlist secured USD 303 million from Samsung in a related case last year. Additionally, in May, Netlist was awarded USD 445 million from chipmaker Micron in a separate lawsuit involving some of the same patents.

Representatives for both Samsung and Netlist did not immediately respond to requests for comment regarding Friday's verdict. Notably, the jury found Samsung's infringement to be willful, which may result in a judge increasing the award by up to three times.

Netlist initiated the lawsuit against Samsung in 2022, claiming that the Korean tech giant's memory modules, used in cloud computing servers and other data-intensive applications, infringed on its patents. According to Netlist, its innovations improve the power efficiency of memory modules and enable users to extract valuable information from large data sets more quickly.

In response, Samsung has denied the allegations, arguing that the patents are invalid and that its technology operates differently from Netlist's inventions. Additionally, Samsung has filed a related lawsuit in Delaware federal court, alleging that Netlist has failed to fulfil its obligation to provide fair licences for technology necessary to comply with international standards.

In other news, India is set to introduce substantial financial incentives, amounting to as much as USD 500 crore, to motivate companies to manufacture components locally for a range of electronic devices, such as mobile phones and laptops. This initiative seeks to bolster the burgeoning tech industry while also aiming to lessen reliance on imports from China.

In the past six years, India's electronics production has more than doubled, soaring to around USD 11,500 crore in 2024. This impressive growth can be largely attributed to major players like Apple and Samsung ramping up their mobile manufacturing operations in the country.

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Inputs from Reuters