On October 10, Luxshare Precision Industry Co.,Ltd. (SZ002475) announced that the US International Trade Commission (ITC) officially launched a Section 337 investigation on October 9 local time based on patent infringement claims filed by US-based Vicor Corporation. Luxshare Precision Industry Co.,Ltd. and its subsidiary Dongguan Luxshare Technology Co., Ltd. were named as respondents.
The investigation involves US Patent US10903734, primarily covering Vertical Power Delivery (VPD) systems, related components, and computing systems incorporating such products. The products under investigation are mainly integrated power delivery solutions for data center power modules and processors. According to publicly available ITC information, Vicor has previously initiated multiple Section 337 investigations against industry chain companies over data center power-related technologies. The current investigation is still at an early stage, and the ITC has not yet made any substantive determination regarding the infringement claims.
Regarding the impact of this investigation, Luxshare Precision Industry Co.,Ltd. stated that the relevant products are still in the customer validation stage and have not yet entered mass production. Based on the current business progress of these products, the company expects that this investigation will not have a material adverse impact on its current operations or financial performance for the period. Luxshare Precision Industry Co.,Ltd. also said it has immediately initiated research on the patents and related products involved, and is actively organizing technical, legal, and business teams to formulate specific response strategies and work plans, drawing on experience from handling similar cases. Going forward, the company will actively defend itself and continue advancing patent technology analysis, product solution evaluation, and necessary technical optimization.
It is worth noting that this Section 337 investigation involves not only Luxshare Precision Industry Co.,Ltd. but also several other companies in the industry chain, including Delta Electronics, Infineon, and Foxconn Industrial Internet. Among them, Delta Electronics is a leading global manufacturer of power management and thermal solutions. This also reflects that Luxshare Precision Industry Co.,Ltd.'s technological deployment in the AI server power supply sector has begun to form direct competition with global industry leaders.
In an investor relations activity record disclosed at the end of August this year, Luxshare Precision Industry Co.,Ltd. introduced that it has established full-link power management product capabilities including DC-DC, AC-DC, high-voltage direct current, and SST. Among these, DC-DC products have secured design wins with multiple customers, which in turn has driven opportunities for customer engagement in AC-DC, high-voltage direct current, and SST products.
In recent years, as AI servers continue to demand higher computing performance and power density, the importance of data center power supply technology has become increasingly prominent. Particularly against the backdrop of continuously rising power consumption of high-performance processors, how to improve power delivery efficiency, reduce energy loss, and achieve higher power density within limited space has become a key direction for server power supply technology evolution. The vertical power delivery technology involved in this investigation is one such technological approach. Compared with traditional power delivery solutions, vertical power delivery offers a new technological option for improving power delivery efficiency and power density by optimizing the power path between power modules and processors. From this perspective, the patent dispute also reflects that competition in the global AI server power supply market is extending into key power delivery technologies and intellectual property.