Semiconductor giant Intel wins patent infringement trial over chips, dodging US$1 billion-plus blow

A federal jury in Texas has cleared Intel of claims it was infringing two patents formerly owned by Dutch chip maker NXP Semiconductors

The trial was held in the same courthouse where a different jury told Intel to pay VLSI Technology US$2.18 billion over other patents last month

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Intel Corp, the world’s largest semiconductor company, reported US$20.9 billion in net income on US$77.9 billion in revenue last year. Photo: Reuters

Published: 2:52pm, 22 Apr 2021Updated: 2:56pm, 22 Apr 2021

Intel Corp ducked getting hit with another multibillion-dollar damage award after a federal jury in Texas cleared the company of claims it was infringing patents, formerly owned by NXP Semiconductors, on ways to speed up computers.

Intel, the world’s largest semiconductor company by revenue, does not infringe two patents owned by closely held VLSI Technology, according to the federal jury in Waco, Texas. The trial was held in the same courthouse where a different jury told Intel to pay VLSI US$2.18 billion over other patents last month.

This was the second of three trials in suits VLSI lodged against Intel over patents that until early 2019 were owned by Dutch chip maker NXP Semiconductors. A third trial, also before US District Judge Alan Albright, is expected to begin in June.

In the most recent trial, VLSI was seeking US$3 billion in damages, saying the inventions were critical to Intel’s ability to make chips faster and with fewer energy requirements. That is more than 3,000 times what the patents were valued at in past acquisitions, Intel’s lawyers argued.

An Intel Corp sign is seen during the China International Import Expo trade fair at the National Exhibition and Convention Centre in Shanghai on November 6, 2018. Photo: Reuters

Intel denied using any of the inventions, saying its own engineers have spent decades developing the chips that are used in everything from laptops to military fighter planes. It also argued that the patents did not cover new ideas even two decades ago, when they were issued.

Semiconductor giant Intel wins patent infringement trial over chips, dodging US$1 billion-plus blow

A federal jury in Texas has cleared Intel of claims it was infringing two patents formerly owned by Dutch chip maker NXP Semiconductors The trial was held in the same courthouse where a different jury told Intel to pay VLSI Technology US$2.18 billion over other patents last month

A federal jury in Texas has cleared Intel of claims it was infringing two patents formerly owned by Dutch chip maker NXP Semiconductors

The trial was held in the same courthouse where a different jury told Intel to pay VLSI Technology US$2.18 billion over other patents last month