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Korean Chip Giants Face Rising Threat from US Patent Trolls Amid AI Boom

South Korean chipmakers like Samsung and SK hynix are becoming prime targets for non-practicing entities, or "patent trolls," as they achieve record earnings during the AI-driven semiconductor supercycle. This vulnerability is exacerbated by policy changes under the former U.S. Trump administration that weakened the inter partes review system, a key safeguard against abusive patent litigation. Industry watchers warn that such lawsuits could severely hamper the companies' research, development, and investment, hurting their long-term technological edge. They urge proactive communication with the U.S. government and the international community to develop practical countermeasures against this growing threat.

Key Points: Korean Chipmakers Vulnerable to US Patent Trolls, Policy Shift

  • AI boom increases chipmaker vulnerability
  • US policy shifts enable patent trolls
  • Lawsuits threaten R&D and investment
  • Samsung, SK hynix post record earnings
2 min read

S. Korean chipmakers feared to be targets of 'patent trolls'

Samsung and SK hynix face increased patent lawsuits from NPEs as US policy changes weaken protections, threatening R&D and competitiveness.

"We should not be taken advantage of by patent trolls. - Industry watcher"

Seoul, Jan 14

Amid a recent supercycle in the chip industry led by an artificial intelligence boom, South Korean chipmakers are becoming vulnerable to non-practicing entities as Washington moves to strengthen patent protection, industry watchers said on Wednesday.

NPEs, commonly known as "patent trolls," generate profits by licensing or enforcing patents rather than producing goods, reports Yonhap news agency.

Such concerns have emerged as Samsung Electronics Co. and SK hynix Inc. post record-breaking earnings and expand their presence in the global chip market, increasing incentives for NPEs to file patent lawsuits.

Others cite protectionist patent policies under the U.S. Donald Trump administration, which weakened safeguards designed to curb abusive litigation in the United States.

In 2011, the U.S. introduced the inter partes review (IPR) system to limit excessive lawsuits by allowing challenges to patent validity. However, the Trump administration tightened eligibility rules for initiating reviews, undermining the system's effectiveness.

The percentage of cases denied review was previously estimated at around 30 percent but surged to nearly 90 percent after a new chief of the U.S. Patent and Trademark Office took office, according to sources.

Industry watchers said lawsuits filed by NPEs could weigh down South Korean chipmakers' research and investment activities, ultimately hurting their technological competitiveness.

"The future of the semiconductor sector, which is the nation's key industry, faces not just technology competition but external headwinds, such as intellectual property policies," an industry watcher said.

"We should not be taken advantage of by patent trolls. We need to deliver our voices to the U.S. government and the international community and prepare practical countermeasures promptly."

Meanwhile, Samsung Electronics ranked second in the global smartphone market in 2025, industry data showed, with its shipments rising 5 per cent from a year earlier, driven by strong sales of its budget lineup.

The South Korean tech giant accounted for a 19 per cent share of the global smartphone market in 2025, up 1 percentage point from a year earlier, according to the data compiled by industry tracker Counterpoint Research.

U.S.-based Apple took the top spot with a 20 per cent share in 2025, up 2 percentage points from the previous year.

- IANS

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Reader Comments

P
Priya S
Very concerning. Patent trolls are a menace everywhere. When big players like Samsung and SK hynix are targeted, it shows no one is safe. Hope the Korean government takes strong diplomatic steps with the US. Our Indian tech firms must also prepare their defenses.
R
Rohit P
The Trump administration policies are coming back to bite. Short-sighted protectionism always has long-term costs. Now it's hurting allies. India must craft its IP policies very carefully to encourage real innovation, not legal warfare. 🤔
M
Michael C
Interesting read. The surge from 30% to 90% denial of review is staggering. It completely undermines the system. This isn't just a Korean problem; it's a global market distortion. The US needs to fix this for the health of the entire tech industry.
S
Shreya B
On one hand, I feel for the Korean companies. On the other, this is a bit of karma? They have been very aggressive with patents themselves. The whole system needs reform. Hope India's new policies focus on fairness for all.
V
Vikram M
This is why we need strong R&D and our own patent portfolios. Can't just be manufacturing hubs. The article is right – it hurts competitiveness. Jai Hind, let's build our own tech sovereignty! 💪

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