Arizona Tribune - Netlist Urges Strong USTR Action in Section 301 Investigation Into South Korea Over Semiconductor IP Abuse

"For over 25 years, Netlist has invested hundreds of millions of dollars developing foundational memory technologies that now power AI computing platforms worldwide, including products manufactured by Samsung," said C.K. Hong, Chief Executive Officer of Netlist. "U.S. federal courts have repeatedly upheld the validity of Netlist's patents and found that Samsung willfully infringed them. Despite these rulings, 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 undermines American innovation and competition. The Section 301 investigation must be used to impose real accountability."

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. By refusing to license and continuing to sell infringing products in the U.S. market, Samsung has secured an unlawful cost advantage that effectively subsidizes South Korean semiconductor exports at the expense of a U.S. innovator.

This misconduct is compounded by opacity in global semiconductor supply chains. 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 remainder entered the United States indirectly, embedded in finished products such as GPUs, servers, and networking equipment assembled in countries including Taiwan, Mexico, Malaysia, and Vietnam.

As a result, the officially reported 2025 U.S.-Korea trade deficit of $56 billion materially understates the true imbalance, which analysts estimate likely exceeds $150 billion. This distortion is expected to intensify in 2026 as the global DRAM market - dominated by South Korean producers - is forecast to more than triple amid the ongoing semiconductor upcycle.

In addition to enforcing U.S. intellectual property rights, Netlist urges USTR to ensure that the Section 301 investigation fully addresses both unlawful IP exploitation and the structural trade mechanisms that conceal its economic impact.

About Netlist

Netlist is a leading innovator in advanced memory and storage solutions. With a rich portfolio of patented technologies, Netlist's inventions are foundational to the advancement of AI computing. To learn more about Netlist, please visit www.netlist.com.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements contained in this news release include, without limitation, statements about Netlist's ability to execute on its strategic initiatives, its positioning to capitalize on market trends, the results of pending litigations and Netlist's ability to successfully defend its intellectual property. Forward-looking statements are statements other than historical facts and often address future events or Netlist's future performance and reflect management's present expectations regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These risks, uncertainties and other factors include, among others: risks that Netlist may not be able to collect the substantial amount in damages previously awarded to it in its litigations (appeals in general could cause a lengthy delay in Netlist's ability to collect damages awards, could overturn the verdicts or reduce the damages awards); risks that Netlist will suffer adverse outcomes in its litigation with Samsung, Micron or Google or in its various other active proceedings to defend the validity of its patents; risks related to Netlist's plans for its intellectual property, including its strategies for monetizing, licensing, expanding, and defending its patent portfolio; risks associated with patent infringement litigation initiated by Netlist, or by others against Netlist, as well as the costs and unpredictability of any such litigation; risks associated with Netlist's product sales, including the market and demand for products sold by Netlist and its ability to successfully develop and launch new products that are attractive to the market; the success of product, joint development and licensing partnerships; the competitive landscape of Netlist's industry; and general economic, political and market conditions, factory slowdowns and/or shutdowns, and changes in international trade and tariff policies. All forward-looking statements reflect management's present assumptions, expectations and beliefs regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These and other risks and uncertainties are described in Netlist's Annual Report on Form 10-K for the fiscal year ended December 28, 2024 filed with the SEC on March 28, 2025, and the other filings it makes with the U.S. Securities and Exchange Commission from time to time, including any subsequently filed quarterly and current reports. In particular, you are encouraged to review the Company's Annual Report on Form 10-K for the fiscal year ended December 27, 2025 that will be filed with the SEC for any revisions or updates to the information in this release. In light of these risks, uncertainties and other factors, these forward-looking statements should not be relied on as predictions of future events. These forward-looking statements represent Netlist's assumptions, expectations and beliefs only as of the date they are made, and except as required by law, Netlist undertakes no obligation to revise or update any forward-looking statements for any reason.

For more information, please contact:

Investors / Media
Mike Smargiassi
The Plunkett Group
[email protected]
(212) 739‑6729

SOURCE: Netlist, Inc.

View the original press release on ACCESS Newswire

R.Garcia--AT