US Issues New Tech Trade Scrutiny Notice
The U.S. government has issued a new regulatory notice covering investigations and rulings on certain power converters, circuit board assemblies, and computing systems. The notice reflects ongoing scrutiny of the technology trade with China and adds another layer to the complex landscape of export controls affecting the global tech supply chain.
- This notice from the U.S. International Trade Commission (USITC) initiates a Section 337 investigation into alleged patent infringement by 10 companies from the U.S., Taiwan, and China. The complaint was filed by Vicor Corporation of Andover, Massachusetts, on January 12, 2026, concerning certain power converters and related computing systems. - The investigation is based on alleged infringement of U.S. Patent No. 12,395,087, specifically targeting power converters used in data centers, AI accelerators, and cloud computing systems. Among the respondents named in the notice are Luxshare Precision Industry Co., Ltd. and its subsidiary Dongguan Luxshare Technology Co., Ltd. from China. - This action follows a previous USITC ruling in February 2025 which found that certain power converter modules and computing systems infringed on other Vicor patents and should be barred from importation. That ruling resulted in a limited exclusion order and cease and desist orders against several companies, including affiliates of Foxconn. - U.S. export controls, particularly on advanced semiconductors and the equipment to manufacture them, have been escalating since 2018 to slow China's technological advancement in areas deemed critical to national security. These measures have been expanded multiple times, most recently in 2023 and 2024, to restrict China's AI capabilities. - Despite these controls, the U.S. still exported 25% of its semiconductor manufacturing machinery to China in 2025, and many third-country electronics imports contain a significant percentage of Chinese components, complicating supply chain compliance. - The ongoing trade friction has prompted a "China Plus One" strategy for many multinational corporations, leading to increased sourcing of electronics from countries like Vietnam, Mexico, and Taiwan. This shift has resulted in a 60% reduction in China reliance for some US importers by the third quarter of 2025, though it also increased logistics costs by 12%. - In a recent development, the Trump administration has reportedly paused several tech security measures aimed at Beijing, including a potential ban on China Telecom's U.S. operations and restrictions on Chinese equipment for U.S. data centers, ahead of a planned summit. - The tech trade dispute has already cost China an estimated $150 billion in lost exports to the United States and has spurred Chinese companies like Huawei to develop domestic alternatives for advanced chips.
