Di Yi Cai Jing Zi Xun·2026-01-26 12:37Core Viewpoint - Kangxi Communication has achieved a preliminary victory against Skyworks, with the U.S. International Trade Commission (ITC) ruling that Kangxi did not infringe on Skyworks' patents, highlighting the capability of Chinese companies to compete with industry giants [2][4]. Group 1: Legal Dispute Overview - The legal conflict between Kangxi Communication and Skyworks began in May 2024 when Skyworks filed a lawsuit claiming patent infringement related to Wi-Fi RF front-end modules [3]. - Skyworks requested damages up to three times its losses and sought a market injunction against Kangxi Communication [3]. - Following the ITC's preliminary ruling, Kangxi Communication was found not to have violated any of the five patents claimed by Skyworks [4]. Group 2: Financial Implications - Kangxi Communication incurred significant legal expenses, totaling approximately 38.84 million yuan in 2024 and an additional 50.59 million yuan in the first three quarters of 2025, bringing total legal costs close to 100 million yuan [6][8]. - Despite revenue growth to 520 million yuan in 2024, Kangxi reported a loss of 76 million yuan due to high litigation costs [6]. Group 3: Market Position and Strategy - Kangxi Communication's primary market focus is not the U.S., with most sales in Hong Kong and Taiwan, and less than 5% in other overseas markets [5]. - The initial ruling has alleviated concerns among European and Southeast Asian customers, potentially boosting exports to the U.S. market [5]. Group 4: Industry Context - The semiconductor industry is witnessing increasing patent litigation, with Kangxi Communication not being the only Chinese company facing such challenges [9][10]. - The competitive landscape is dominated by foreign firms like Skyworks and Qorvo, which hold a significant market share and a vast number of patents compared to Chinese companies [10]. - Kangxi Communication and other Chinese firms are ramping up R&D investments, with Kangxi's R&D spending increasing by 70% to 107 million yuan in 2024 [10]. Group 5: Future Outlook - The outcome of the ITC's final ruling, expected in May 2026, will significantly impact the ongoing litigation in California [4]. - The preliminary victory serves as a positive case for other Chinese tech companies facing international patent disputes, challenging the stereotype of weak patent capabilities [11].