SHANGHAI (Reuters) – Shares in Apple Inc supplier Luxshare Precision Industry Co Ltd fell 9.5% on Monday amid fresh concerns over a U.S. patent infringement investigation against him.
The company informed on Sunday during a stock market document about two notices issued by the US International Trade Commission (USITC) about a section 337 investigation that Amphenol Corp filed against it, infringing on the IP.
Luxshare said it had hired a team of lawyers to respond and would follow the procedure without elaborating, but reiterated that the case ‘would not have a material impact on its current operations and production.
Amphenol filed a Section 337 complaint against Luxshare and its subsidiaries in December, alleging that certain electrical components imported from Luxshare into the United States infringe on Amphenol’s connection cable patents.
Days later, Luxshare issued a statement saying it had learned of the complaint via USITC’s website, adding that it had set up an internal working group to investigate the claims.
Founded in 2004, Luxshare has become a fast-rising supplier to Apple in recent years. It gradually shifted the value chain of the hardware giant, from making connecting cables for the iPhone and Macbook to manufacturing Airpods.
Last year, the company opened two Wistron Corp. iPhone plants.
The move unnerves some executives of Foxconn, the dominant maker of the devices, and is seen by analysts as a sign of more indigenous Chinese companies starting deeper into Apple’s supply chain.
Reporting by Josh Horwitz; edited by Richard Pullin