Netlist Urges USTR to Confront South Korea Over Semiconductor IP Abuse

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Netlist, Inc. has announced its strong support for the Trump Administration's decision to initiate a Section 301 investigation into the trade practices of South Korea and fifteen other economies. The company is urging the Office of the U.S. Trade Representative (USTR) to directly confront the systematic misappropriation of U.S. intellectual property, particularly in the semiconductor sector, which has played a central role in South Korea's structural trade advantage. Multiple U.S. federal juries have found Samsung liable for willful infringement of Netlist's patented AI memory technologies, awarding cumulative damages exceeding $420 million.

Why it matters

This case highlights the ongoing tensions between U.S. technology companies and South Korean manufacturers over intellectual property rights. Netlist argues that the misappropriation of its patented technologies has given South Korean semiconductor producers an unfair cost advantage, distorting global trade flows and undermining American innovation.

The details

Netlist has invested hundreds of millions of dollars developing foundational memory technologies that now power AI computing platforms worldwide, including products manufactured by Samsung. U.S. federal courts have repeatedly upheld the validity of Netlist's patents and found that Samsung willfully infringed them. However, Samsung continues to ship infringing products into the United States without a license while challenging the very patents it was found to violate. This conduct, Netlist argues, undermines American innovation and competition.

• In 2025, South Korea exported approximately $173 billion in semiconductors, with DRAM and NAND memory representing its largest export category.
• Industry analysts estimate that more than 70% of these chips are ultimately purchased by U.S. customers, yet only about $15 billion was recorded as direct U.S. imports from Korea.
• The global DRAM market, dominated by South Korean producers, is forecast to more than triple in 2026 amid the ongoing semiconductor upcycle.

What they’re saying

What’s next

The Section 301 investigation must be used to impose real accountability on South Korea for the systematic misappropriation of U.S. intellectual property, particularly in the semiconductor sector.