Chinese Chip Stocks Surge After Supreme Court Blocks Infineon in GaN Patent Case
The Supreme People's Court of China has upheld an injunction from a lower court that prohibits Infineon Technologies, the German semiconductor manufacturer, from marketing gallium nitride (GaN) products within mainland China. This decision, made on Friday, confirmed a ruling from May that found Infineon guilty of violating two essential GaN patents owned by its Chinese competitor, Innoscience. As a result, Infineon is required to halt all sales and imports of the infringing items in China and pay damages of 10 million yuan (US$1.47 million). Following the ruling, Chinese chip material stocks experienced a surge on Monday, with Innoscience's shares rising by 16.6%. Zhang Guobin, founder of eetrend.com, characterized the situation as a "system-level confrontation" in the third-generation semiconductor sector.
Key facts
- China's Supreme People's Court upheld an injunction against Infineon Technologies on Friday.
- The injunction bars Infineon from selling gallium nitride (GaN) products in mainland China.
- The lower court found Infineon infringed two core GaN patents held by Innoscience.
- Infineon was ordered to cease all Chinese sales and imports of infringing products and pay 10 million yuan (US$1.47 million) in damages.
- Innoscience's Hong Kong-listed stock surged 16.6% on Monday.
- Silan Microelectronics and Sanan Optoelectronics both surged by the 10% daily limit.
- China Resources Microelectronics jumped over 13%.
- Zhang Guobin called the dispute a 'system-level confrontation' over third-generation semiconductor dominance.
Entities
Institutions
- China's Supreme People's Court
- Infineon Technologies
- Innoscience
- Silan Microelectronics
- Sanan Optoelectronics
- China Resources Microelectronics
- eetrend.com
Locations
- China
- mainland China
- Hong Kong
- Shanghai