Memory under pressure: the 337-TA-1523 investigation and a 1b DRAM wafer that costs 54 percent more

Memory has become a volatile link in the supply chain. On 23 September, the US International Trade Commission (ITC) announced a Section 337 investigation into specific DRAM devices and dependent products. The case is numbered 337-TA-1523. Netlist filed the complaint on 11 August.

Who is fighting whom

Netlist alleges that Micron Technology, Micron Semiconductor Products, Hewlett Packard Enterprise, Lenovo, Lenovo US, and Supermicro infringed four US patents by importing or selling selected DRAM chips, along with servers, computing systems, and arrays containing that memory. The company seeks a limited exclusion order and a cease-and-desist order. The ITC notes that opening an investigation does not establish infringement. The case covers DDR5-generation DIMM modules and the devices that use them.

Netlist is not a memory maker in the classic sense. Its business model has shifted toward monetising intellectual property, including numerous patent disputes. The track record shows how effective that strategy is. In 2021, SK Hynix paid 40 million dollars in a settlement and signed a five-year cross-licensing deal. In 2023, a jury awarded about 303 million dollars against Samsung. In 2024, another case with Samsung ended at 118 million dollars, and Micron was ordered to pay 445 million dollars in a separate proceeding.

How the pressure works

Section 337 differs from an ordinary patent lawsuit. Its power rests on market access. Once the ITC finds an infringement, it can block imports, cutting a product off from its largest market. Netlist has used this tool before. On 30 September 2025, it filed a complaint over DDR5 DIMM modules and HBM memory against Samsung, Google, and Supermicro. On 16 June 2026, it filed another, naming Nvidia and Broadcom among others. In July, the ITC opened proceeding 337-TA-1511.

The other side: prices

Legal pressure overlaps with supply pressure. According to the Korean research firm Kernel Insight, a 1b DRAM wafer costs 0.654 dollars per square millimetre. A TSMC N2 wafer is priced at 0.424 dollars, 54 percent less, even though N2 requires multiple patterning and EUV lithography. The reason is supply. Building AI servers consumes HBM and high-capacity DDR5 modules, and the three largest memory makers are expanding capacity more slowly than demand is growing. SK Hynix's chief executive argues the AI industry cannot exist without memory. Acer chairman Chen Wei predicts the shortage will not last until 2030, but that prices will keep rising until the middle of 2027. Only then, according to analysts, may the market return to balance.

The strain on production capacity shows in investment plans. In South Korea, SK Hynix and Samsung are competing for land in the Honam and Gwangju semiconductor cluster. Of 826 hectares designated for the industrial park, about 208 hectares can be developed immediately. Nine rounds of talks held from July to September this year dealt mainly with location and pace. The schedule calls for site preparation in 2027, first deliveries of power and water by the end of 2028, and the start of mass production in June 2030. Samsung's Yongin investment is to start earlier, in October 2029.

The economics of memory have shifted in favour of the manufacturers. A 1b DRAM wafer costs 0.654 dollars per square millimetre, 54 percent more than a TSMC wafer on the N2 process, priced at 0.424 dollars. The AI build-out consumes HBM and high-capacity DDR5 modules, and the capacity of the three largest makers cannot keep up with demand. The patent fight with Netlist is only one front in the battle over margin.