Taiwanese electronics manufacturer Quanta Computer will sign a licensing agreement with US power-technology firm Vicor by the end of 2027, paying royalties upwards of $100 million dollars on its AI server exports.

On 9 October, the US International Trade Commission opened a patent case against 20 server manufacturers. The case could block imports of servers using Vicor’s patented technology, putting up to $120 billion dollars worth of server shipments at risk. In an earlier case, importers had to post bonds worth the full value of each server, giving major customers an incentive to push suppliers towards early settlements. Quanta is particularly vulnerable because it already faces a 2025 Vicor cease-and-desist order while AI server exports account for over 70% of its annual revenue worth up to $40 billion dollars. Vicor says companies that settle early will pay lower licensing rates. Quanta will pursue licensing agreement, accepting lower margins rather than risk losing US access. The terms of this settlement will likely set the benchmark for what Vicor demands from other Taiwanese manufacturers named in the case (Wistron, Wiwynn and Foxconn).