China's Supreme People's Court has upheld an injunction that bars Infineon from selling certain gallium nitride (GaN) power chips in mainland China. The ruling marks a major win for Innoscience, the current market leader in GaN power devices. Infineon must also pay 10 million yuan (about $1.48 million) in damages.
Innoscience secures sales ban and damages
The dispute centers on competing patents for GaN power semiconductors used in chargers, data centers, and electric vehicles. Innoscience initiated the lawsuit, and the Chinese court ruled in its favor. Infineon faces a sales ban on the contested products within China.
The legal battle spans multiple regions. In the US, the International Trade Commission previously ruled that Innoscience infringed an Infineon patent, though Innoscience claims its redesigned products are cleared. A German court also found Innoscience infringed Infineon patents, with further trials scheduled.
Innoscience led the global GaN power-device market in 2024 with a 29.9% share, while Infineon ranked fourth at 10.3%. Following the Chinese ruling, Innoscience shares rose 16.6%, and Chinese chip stocks surged overall.
Infineon's senior vice president Johannes Schoiswohl said the ITC ruling "once again highlights the robustness of Infineon's intellectual property." The company continues to defend its patents in other jurisdictions. The Chinese ruling does not impact Infineon's operations outside mainland China.
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