Vicor Launches Third Case Against 20 Firms Over AI Power Delivery

The U.S. International Trade Commission announced on Oct. 9 the launch of an investigation based on a complaint by power-module maker Vicor. The case number is 337-TA-1526, with 20 respondents named. At issue is a vertical power delivery structure known as VPD. Reporting by Zhiyuan Tongxue of Huxiu said the entire AI server supply chain has been drawn in.

This filing is not an isolated dispute. It is Vicor’s third Section 337 investigation in AI power delivery. The first was filed in 2023 and ended with a final determination in Vicor’s favor in February 2025. The second was filed in February 2026, covering intermediate bus power modules, and remains pending. The third directly targets the vertical power delivery structure itself.

The scope of attack has expanded with each round. The first covered components, the second secondary power, and the third finished products and the supply chain. Respondents range from Luxshare to Foxconn, and from Infineon to related integrators. The defining feature is that the scope now spans from chips to system integration. Some observers see the serial filings as aimed at building a comprehensive licensing network.

Vicor files third Section 337 complaint against 20 AI server supply-chain firms, targeting vertical power architecture

Anatomy of the Third Probe Involving 20 Firms

A Section 337 investigation examines whether products imported into the United States infringe patents. If an exclusion order is issued, imports of the covered products into the United States are barred. This time respondents number 20, covering nearly the entire power supply chain for AI accelerators. Not only finished-product makers but also component and power suppliers are named. The expansion of generative AI infrastructure, as outlined in AI Glossary 2026: AGI, Agents and CoT Explained, forms the backdrop to heightened interest in power delivery.

Alongside the Section 337 case, Vicor also combined a filing in federal district court. It sued Monolithic Power Systems in federal court in Texas on Sept. 8. The case number is 7:26-cv-00364, one day earlier than the Section 337 complaint. While the Section 337 proceeding contests a ban on imports, the district court suit contests damages. Using both routes at once has intensified pressure.

The fact that MPS was sued alone in district court is also drawing attention. Its multiphase buck circuits use a different approach from Vicor’s power delivery structure. Whether that difference can serve as a design-around will be at issue. Vicor has effectively signaled its position that its rights extend despite differences in method. The court’s ruling will determine whether future design-arounds are viable.

How Vertical Power Delivery Cuts Losses

At the core of VPD is a three-dimensional physical structure. The chip sits on the upper layer and the power module on the lower layer, joined by an interconnect layer. Current passes vertically through the substrate, flowing from bottom to top. The path length is compressed to 1 to 3 millimeters. Conventional lateral power delivery routed through several centimeters of wiring.

Shortening the path directly reduces losses. Loop resistance in power delivery falls from over 90 micro-ohms to the low 10-micro-ohm range. That is roughly one-tenth the level. Resistive heating losses from current are cut directly by 70%. AI chip currents reach 2,000 to 3,000 amps, with some projections pointing to nearly 10,000 amps in the future.

The larger the current, the greater the resistive losses. What is at stake is electricity bills and cooling costs themselves. Vicor’s patents protect not a specific circuit topology but the three-dimensional structure as a whole. Even changing circuits or control schemes cannot shorten the path without placing the power directly underneath. That physical constraint underpins the strength of the rights.

The difficulty of working around is also reflected in acquisition moves. ADI acquired Empower Semiconductors. Infineon acquired c2i Semiconductors. Navitas acquired Claros. A trend has emerged of addressing hard-to-circumvent technology through acquisition.

NVIDIA’s Return Highlights the High-Power Reality

NVIDIA’s evolving power approach tells the story. In the Ampere generation, it adopted Vicor power modules. For Hopper and Blackwell, it shifted to a discrete-component approach. The reasons were diversifying procurement and containing costs. It was a decision to avoid dependence on a single supplier.

Conditions changed with the Rubin generation. Power consumption per board reached 2,300W. Lateral board wiring can no longer handle such large currents. The discrete approach worked at lower power but hit limits on losses and heat dissipation at high power. At CES 2026, NVIDIA announced full adoption of vertical power delivery for Rubin.

Industry analyses suggest 96% power delivery efficiency is possible. The higher power goes, the more vertical power becomes a must-have option. It has entered territory where physics leaves no workaround. That is why Vicor’s rights overlap with the core of AI accelerators. Power delivery has shifted from an accessory to a foundation that determines performance.

Two-Front Strategy and Growth of the

Licensing Business

Vicor’s revenue mix is tilting toward licensing. Patent licensing revenue in the second quarter of 2026 was $30.4 million. That was up from $10.4 million a year earlier, more than doubling. According to the chief executive, four equipment makers and large-scale operators have licensed the vertical power technology. Licensing has strengthened its position as recurring revenue.

Upward revisions to guidance have continued. Third-quarter revenue guidance rose from about 10% quarter-on-quarter growth to over 20%. At the end of September it was raised further to over 30%. The core patents are said to expire around 2036. At least 10 years of royalty life remain, with related patents also accumulating.

Moves on production are also advancing. It is expanding a semiconductor plant in New Hampshire. Planned floor space totals nearly 1 million square feet. The capacity expansion prepares for long-term demand. Litigation, licensing and production expansion are moving forward as one.

Timeline for Respondents and Settlement Outlook

Section 337 timelines are long. From institution to final determination usually takes 16 to 18 months. With institution on Oct. 9, a target completion date is to be set about 45 days later in late November. Based on the pace of the previous case, a final determination would come between late 2027 and mid-2028. It is not a process that concludes in the short term.

A settlement through agreement and licensing is the likely outcome. The first round settled for $45 million about three months after the final determination, concluding with a license agreement. The 20 respondents this time may follow a similar path, though amounts will differ. Securing a license would allow continued sales. Avoiding an exclusion order motivates negotiation.

The scope of an exclusion order is also limited. It covers blocking imports at U.S. customs. Products not imported into the United States are unaffected. Sales for China, Europe and Southeast Asia are outside scope. Unless the North American AI server market is the main battleground, actual harm may be smaller than headlines suggest.

Variables remain. Presidential review and progress in the district court suit are intertwined. The ruling in the MPS case will affect room for design-arounds. The second case is also proceeding in parallel. The overall outcome will be decided by the interaction of multiple proceedings.

Impact on Chinese Supply Chains and

Replacement Demand

The impact on China-linked supply chains is uneven. Luxshare and Foxconn Industrial were named directly as respondents. The products at issue are said to be still pre-mass-production, so near-term impact is mainly sentiment-driven. Direct hits to shipments and earnings are limited. The focus is on exposure to North America-bound shipments.

Hopes for replacement demand have also emerged. Xinleineng, Megmeet, Euland and others were not named in the complaint. The reason cited is that their technology paths do not overlap with Vicor’s patents. If supply sources are switched, they could capture orders. Because the stage is still pre-mass-production, room for design changes remains.

A broader supply-chain reshuffle is also conceivable. Finished-product makers will weigh obtaining licenses against design changes. Component makers will need to follow their customers’ choices. If higher power is irreversible, adapting to vertical power is unavoidable. How cost burdens are shared will be a future negotiating point.

Editorial Opinion

On short-term impact: In the next 3 to 6 months, procurement divisions at respondent firms are likely to rush calculations of licensing terms. With many products still pre-mass-production, design reviews rather than shipment halts will likely dominate discussion. Validation projects for alternative power suppliers are expected to increase, intensifying quotation competition.

On the long-term view: In 1 to 3 years, vertical power is likely to become established as the standard structure for high-power accelerators. With Vicor’s core patents running until around 2036, royalties are expected to become a permanent cost element. The supply chain looks set to split into licensees and independent design-around groups, driving reorganization.

Questions from the editors: Given the strength of a physical-structure patent, where does legitimate protection end and excessive enclosure begin. Is it healthy for a single company’s rights to shape the cost of AI infrastructure. How should the balance between design freedom and compensation to rights holders be set.

References

• “ 20家AI巨头被Vicor拖入专利战 “, by 智远同学 — 虎嗅网, 2026-10-10T16:34:59.000Z (ARR)
• Source URL: https://www.huxiu.com/article/4896561.html?f=rss