Kioxia Holdings Ordered to Pay $229M in US Patent Lawsuit, Stock Falls 16%

Kioxia Holdings, a Japanese NAND flash memory manufacturer, was ordered to pay $229 million (approximately ¥340 billion) in damages after losing a patent infringement lawsuit in the United States on local time May 16. US satellite communications company ViaSat filed the lawsuit five years ago, alleging that certain Kioxia flash memory products infringed patents related to high-speed data processing technology designed to reduce power consumption and extend memory lifespan. The patent lawsuit defeat, combined with a broader global decline in semiconductor stocks, drove Kioxia's share price down 16.10% to ¥52,110 on the 17th, with its market capitalization falling to ¥28.5168 trillion — less than half the peak recorded on the 22nd of last month.

Texas Federal Court Jury Orders $229 Million Damages

According to reports from NHK and other Japanese media on the 18th, a jury at the US Federal District Court in Texas accepted the plaintiff's claims on local time May 16 and ordered Kioxia to pay damages. The patents in question relate to technology for reducing power consumption and increasing the lifespan of memory semiconductors. Kioxia stated it cannot accept the trial results and will pursue all legal measures including an appeal.

Kioxia Stock Price Falls 16.10% Following Verdict

On the 17th, Kioxia's stock price plunged 16.10% to close at ¥52,110, with its market capitalization reaching ¥28.5168 trillion (approximately ¥261.2 trillion) — less than half the peak recorded on the 22nd of last month. On the same day, Japan's benchmark Nikkei 225 average closing price fell 4% from the previous day to 64,141, the lowest level since the 8th of last month.

Competitive Pressure from China's CXMT Cited as Additional Factor

The Nikkei newspaper noted that concerns over Kioxia losing market share to China's CXMT (ChangXin Memory Technologies), which is preparing for an initial public offering (IPO), contributed to both Kioxia's stock decline and the broader Nikkei index drop.

FAQ

What did the Texas federal court jury decide on local time May 16? The jury at the US Federal District Court in Texas ruled in favor of ViaSat and ordered Kioxia Holdings to pay $229 million in damages for patent infringement related to flash memory products.

How much did Kioxia's stock price fall on the 17th? Kioxia's stock price dropped 16.10% to close at ¥52,110 on the 17th, with its market capitalization falling to ¥28.5168 trillion — less than half the peak recorded on the 22nd of last month.