Amid a chip industry supercycle driven by artificial intelligence, South Korean chipmakers are at risk from non-practicing entities (NPEs), also known as “patent trolls.” Samsung Electronics Co. and SK hynix Inc. are experiencing record-breaking earnings, making them attractive targets for patent lawsuits by NPEs.
Concerns have arisen due to protectionist patent policies under the U.S. Donald Trump administration, which have weakened safeguards against abusive litigation. The introduction of the inter partes review (IPR) system in 2011 aimed to limit excessive lawsuits by challenging patent validity, but eligibility rules were tightened under the Trump administration, reducing the system’s effectiveness.
The surge in cases denied review, from around 30 percent to nearly 90 percent, has raised alarms among industry experts. Lawsuits from NPEs could impede the research and investment activities of South Korean chipmakers, potentially impacting their technological competitiveness in the global market.
Industry watchers emphasize the importance of not falling prey to patent trolls and stress the need to voice concerns to the U.S. government and the international community while swiftly devising practical countermeasures to protect the semiconductor sector.
Samsung Electronics secured the second position in the global smartphone market in 2025, with a 19 percent market share, up by 1 percentage point from the previous year. The company’s growth was driven by robust sales of its budget smartphone range, according to industry data from Counterpoint Research.
