INTC · 10-Q · 2026Q3 · Full report

VLSI Patent Litigation

INTEL CORP · 2026-10-30 · Importance 50 · Surprise 24 · Contradicted

VLSI litigation includes U.S. patent cases with prior jury awards of $2.2 billion in the first Texas case and approximately $ million in the third Texas case; appeals, remand proceedings, and license defenses remain in progress. In April 2026, the Federal Circuit reversed and remanded a separate California case involving one patent. Intel had accrued approximately $1.0 billion for the VLSI litigation as of September 26, 2026 and stated that it could not reasonably estimate losses above the recorded amount.

Key facts

• In the first Texas VLSI case, the jury awarded $1.5 billion for literal infringement of one patent and an amount omitted in the provided text for infringement of another patent; the court entered final judgment in April 2022 for $2.2 billion in damages plus approximately an omitted amount in interest. source
• In December 2023, the Federal Circuit affirmed infringement findings on the patent associated with a $1.5 billion award, but vacated the damages award and remanded for further damages proceedings. source
• In April 2026, the Federal Circuit reversed and remanded a VLSI case against Intel to the district court, after Intel had prevailed on all eight patents in the original case and final judgment was entered in April 2024. source
• In the third Texas VLSI case, the jury found one patent valid and infringed and awarded VLSI approximately an amount omitted in the provided text in damages, plus interest and a running royalty. source
• Intel's May 2025 jury verdict in a factual trial on its VLSI license defense was in Intel's favor. source
• In August 2026, China's Supreme People's Court affirmed a finding of non-infringement in Intel's favor in the Shanghai VLSI case. source
• Intel had accrued $1.0 billion in liabilities related to VLSI litigation as of September 26, 2026. source
• In the second Texas VLSI case, the jury found Intel did not infringe the asserted patents; VLSI had sought approximately $3.0 billion plus enhanced damages. source

Impact estimates