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March 19, 2024

Samsung, SK hynix keep mum on US protectionist moves

PUBLISHED : January 22, 2018 - 16:20

UPDATED : January 22, 2018 - 16:21

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[THE INVESTOR] Korean chipmakers Samsung Electronics and SK hynix have refused to comment on the US International Trade Commission’s recent decision to investigate their alleged patent infringement, possibly due to concerns of a backlash, according to industry sources on Jan. 22.

“We have nothing to say regarding the USITC probe,” a Samsung spokesperson said. “We must wait until the results are announced.”




Industry watchers say the firm is concerned about upsetting the US government, which is increasingly opting for protectionist trade policies. The same goes for SK hynix.

On Jan. 19, the USITC launched a probe into global tech companies, including Samsung, SK hynix, Dell, and Lenovo, for allegedly infringing intellectual property rights of solid-state drives after receiving a complaint from US chip company BiTMICRO earlier this month.

According to the complaint filed by BiTMICRO, the tech firms violated Section 377 of the Tariff Act of 1930, which declares the infringement of a US patent, copyright, registered trademark, or regards mask-work to be unlawful in import trade. Samsung, the world’s No. 1 SSD maker, and SK hynix, which is fast growing in the relevant segment, are said to be the main targets of the litigation.

Neither of the two Korean companies revealed which of their patents were involved in the complaint.

Samsung, one of the world’s largest electronics makers, is also facing safeguard measures by the US government, which impose a 50-percent tariff rate on the company’s washer imports that exceed 1.2 million units.

LG Electronics’ washing machines are also subject to the trade restrictions.

The safeguard measures were recommended by the US trade watchdog in November after US electronics firm Whirlpool in May lodged a complaint that the Korean rivals were dumping their products.

US President Donald Trump is expected to announce, as early as this month, a final decision on whether to implement the safeguard measures that limit the import of Samsung and LG washing machines.

By Kim Young-won (wone0102@heraldcorp.com)

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