Why is Foxconn Industrial Internet stock sliding today?
Foxconn Industrial Internet's stock is experiencing a decline of 4.9% to 53.3 CNY following a U.S. government investigation into the company and its peers over a patent dispute. The U.S. International Trade Commission has launched a Section 337 investigation (No. 337-TA-1526) naming Foxconn Industrial Internet's Industrial Fulian unit and its U.S. subsidiaries as respondents.
The dispute centers around vertical power delivery systems used in AI servers, cloud computing infrastructure, and data center equipment. Vicor Corporation, the Massachusetts-based power technology firm behind the complaint, is seeking a limited exclusion order and cease-and-desist orders that could restrict the import and sale of the accused products in the United States.
The investigation is particularly concerning due to Vicor's previous Section 337 actions targeting the AI server power supply chain, with a prior case resulting in a finding of infringement and an exclusion order. The broader Chinese equity market also experienced a tight range on Monday, contributing to the sector-wide overhang affecting AI server manufacturers.
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