SHANGHAI (Reuters) – Shares of Apple Inc. Luxshare Precision Industry Co. Ltd. fell to 9.5% on Monday amid new concerns over a patent infringement investigation filed against it from the United States.
On Sunday, in a stock exchange record, the company said it had been informed of two notices issued by the U.S. International Trade Commission (USITC) about a section 337 investigation filed against it by U.S.-based Amphenol Corp. , alleging infringement of intellectual property.
Luxshare said it had hired a team of lawyers to respond and would “follow the procedure” of the investigation, without detailing it, but reiterated that the case “will not have a material impact” on its current operations and production.
Amphenol filed a section 337 lawsuit against Luxshare and its subsidiaries in December, alleging that certain electrical components imported into the United States from Luxshare infringe Amphenol’s patents for connector cables.
Days later, Luxshare issued a statement stating that it had learned of the complaint through the USITC website and added that it had set up an internal working group to investigate the claims.
Founded in 2004, Luxshare has in recent years become a rising supplier for Apple. It has steadily increased the value chain of the hardware giant, from the manufacture of connector cables for the iPhone and Macbook to the manufacture of Airpods.
Last year, the company acquired two iPhone assembly plants from Wistron Corp., based in Taiwan.
This move baffled some executives at Foxconn, the dominant maker of phones, and is seen by analysts as a sign of more Indigenous Chinese companies affecting Apple’s supply chain.
Report by Josh Horwitz; edited by Richard Pullin