Netlist Inc. (OTCQB: NLST) announced its support for a Section 301 investigation into South Korea's trade practices, calling on the U.S. Trade Representative to address what it characterizes as semiconductor intellectual property violations by Samsung.

The memory technology company stated that U.S. federal courts have found Samsung liable for willful infringement of Netlist's patented AI memory technologies, with cumulative damages exceeding $420 million. Netlist said Samsung continues to sell products in the U.S. market without licensing agreements despite court rulings.

"U.S. federal courts have repeatedly upheld the validity of Netlist's patents and found that Samsung willfully infringed them," said C.K. Hong, Chief Executive Officer of Netlist. "Despite these rulings, Samsung continues to ship infringing products into the United States without a license."

According to the company's statement, South Korea exported approximately $173 billion in semiconductors in 2025, with DRAM and NAND memory representing the largest export category. Netlist estimates that over 70% of these chips reach U.S. customers, though only about $15 billion was recorded as direct U.S. imports from Korea.

The company claims the officially reported 2025 U.S.-Korea trade deficit of $56 billion understates the actual imbalance, which it estimates exceeds $150 billion when accounting for semiconductors embedded in products assembled in other countries including Taiwan, Mexico, Malaysia, and Vietnam.

The Section 301 investigation targets South Korea and fifteen other economies' trade practices. Netlist operates as a memory and storage solutions company with operations in Irvine, California.