US courts recorded 18 semiconductor patent lawsuits involving South Korean companies between January and the end of July — an all-time high that surpassed the previous annual record in just seven months, according to the Korea Intellectual Property Protection Agency (KIIPA), which has tracked the figures since 2012. The total compares with 10 cases in 2024 and 8 last year. It also marks the first time semiconductor-specific cases have been separated from the broader pool of US patent suits involving South Korean companies.

Korean companies were defendants in 9 of those cases, against 6 in each of the two prior years. They also filed 9 suits of their own, matching the annual record set in 2022. With five months of the year remaining, both figures are expected to reach double digits, pushing total litigation past 20 cases.

Who is filing the lawsuits?

Non-practicing entities drive the offensive. NPEs acquire patents without manufacturing anything and monetize them through litigation targeting companies able to pay settlements, damages and royalties. Of the 24 US semiconductor suits filed against Korean companies between 2022 and July this year, NPEs were plaintiffs in 17 — 70.8%. This year alone, they initiated 7 of the 9 cases against Korean firms, or 77.8%.

With Samsung Electronics (005930.KS) and SK Hynix (000660.KS) projected to post record operating profits during the semiconductor supercycle, the two memory leaders have become prime targets.

Specific cases this year:

• SK Hynix was sued in the US in May over high bandwidth memory (HBM), with the plaintiff — NPE Monolithic 3D — alleging unauthorized use of patented 3D vertical stacking structures and transistor arrangements. The same NPE had sued SK Hynix in February.
• Samsung Electronics was sued in June by NPE Mare Infinitus over HBM-related patents.
• Seoul Semiconductor (046890.KS) faced its first-ever semiconductor patent suit, filed in February by Taiwan's Everlight Electronics, an LED maker that relied on patents acquired from other companies rather than in-house technology.

The disputed patents in the Samsung and SK Hynix cases cover 3D vertical stacking and through-silicon via (TSV) technology — core techniques used in HBM, NAND flash and other products. The industry is watching whether the disputes spread beyond HBM.

What does the US policy shift change?

The policy environment in Washington has strengthened the plaintiffs' hand. Since Donald Trump took office, the administration has taken a harder line on protecting the patent rights of American companies. The US Patent and Trademark Office now rejects inter partes review (IPR) petitions more frequently — a key defensive tool for companies facing infringement claims. US-based NPEs have responded with more aggressive filing activity.

Korean defendants have limited countermeasures. In manufacturer-versus-manufacturer disputes, a company can counter-sue with its own patent portfolio. NPEs manufacture nothing, so even large corporate patent portfolios offer no offensive leverage. Industry sources say sued companies often settle regardless of actual infringement, weighing litigation costs and reputational damage.

Kim Yong-sun, head of the intellectual property division at KIIPA, said: "As semiconductors account for a growing share of South Korea's industrial base, there is a noticeable trend of overseas NPEs increasingly initiating semiconductor-related patent disputes."

How are Korean companies responding?

They are filing back. South Korean companies lodged 9 US semiconductor suits this year, with a significant portion brought by Korea-based NPEs that acquire patents from small and medium-sized enterprises or research institutions and assert them against foreign companies. Past disputes primarily involved overseas NPEs suing Korean firms; the direction has now partially reversed.

Why do ITC cases matter most?

The gravest risk is an import restriction. Some cases are proceeding through the US International Trade Commission, which can issue exclusion orders banning infringing products from the US market. A disruption to Korean semiconductor exports to the US, depending on ITC rulings, cannot be ruled out.

Roh Jae-il, chairman of the Korea Intellectual Property Management Association, said: "An ITC import exclusion order could shake the entire semiconductor supply chain of South Korea's industry. It is time to treat semiconductor patent disputes as a strategic industrial trade issue."

Sung Yun-mo, operating committee chairman of the Intellectual Property Strategy Forum and former Minister of Trade, Industry and Energy, noted that the US combines federal support for legitimate patent enforcement with state-level curbs on frivolous litigation. "South Korea, by contrast, has not sufficiently discussed support measures to help core industries avoid patent infringement or systems to facilitate the monetization of patent rights both domestically and internationally," he said, adding: "The government and the private sector must work together to develop new institutional frameworks."