Japanese NAND flash manufacturer Kioxia Holdings lost a patent infringement lawsuit in the United States and was ordered to pay $229 million (approximately 340 billion KRW) in damages on the 16th (local time). US satellite communications company Viasat filed the lawsuit five years ago, claiming that certain Kioxia flash memory products infringed its patents related to high-speed data processing technology. The patents in question involve technology for reducing power consumption and extending the lifespan of memory semiconductors, and a jury at the US Federal District Court in Texas ruled in favor of the plaintiff.
Texas Federal Court Jury Rules in Viasat's Favor
According to reports from NHK and other Japanese media on the 18th, Viasat filed the lawsuit five years ago alleging that some of Kioxia's flash memory products violated its patents related to high-speed data processing technology. The patents are known to cover technology related to reducing power consumption and increasing the lifespan of memory semiconductors. A jury at the US Federal District Court in Texas accepted the plaintiff's claims on the 16th (local time) and ordered Kioxia to pay $229 million in damages.
Kioxia Plans Appeal Against Verdict
Kioxia stated that it cannot accept the trial results and will pursue all legal means, including an appeal. The company has not provided additional details on the timeline or specific grounds for its planned appeal.
Kioxia Stock Drops 16.1% Following Verdict
Kioxia's stock price fell sharply on the Tokyo stock market the previous day, affected by news of the patent trial loss and the decline in global major semiconductor stocks. Kioxia closed trading on the Tokyo stock exchange at 52,110 yen, down 16.1% from the previous day. The company's market capitalization stood at 28.5168 trillion yen (approximately 261.2 trillion KRW), falling to less than half of the peak recorded on the 22nd of last month.
Nikkei 225 Index Falls to Lowest Level Since May 8
On the same day, the Nikkei 225 index, Japan's representative stock market index, closed at 64,141, down 2,694 points (4%) from the previous day, marking its lowest level since May 8. The day-on-day decline ranked fifth largest on record. The Nihon Keizai Shimbun interpreted that concerns about Kioxia losing market share to China's CXMT (Changxin Memory Technologies), which is preparing for an initial public offering (IPO), contributed to the decline in Kioxia's stock price and the Nikkei index. The newspaper also noted that South Korean financial authorities' recent strengthening of regulations on single-stock leveraged products affected the suppression of purchases of highly correlated Japanese stocks.
FAQ
What was Kioxia ordered to pay in the US patent lawsuit?
Kioxia was ordered to pay $229 million (approximately 340 billion KRW) in damages following a jury verdict at the US Federal District Court in Texas on the 16th (local time).
Why did Kioxia lose the patent lawsuit to Viasat?
Viasat filed the lawsuit five years ago claiming that certain Kioxia flash memory products infringed its patents related to high-speed data processing technology, specifically technology for reducing power consumption and extending the lifespan of memory semiconductors. A jury accepted Viasat's claims.
How much did Kioxia's stock price fall after the verdict?
Kioxia's stock price fell 16.1% to 52,110 yen on the Tokyo stock exchange, with its market capitalization dropping to 28.5168 trillion yen (approximately 261.2 trillion KRW), less than half of the peak recorded on the 22nd of last month.
