China’s Aiko to Pay USD238M to Resolve Maxeon Patent Dispute

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A leading Chinese solar cell manufacturer has agreed to pay approximately $238 million to settle a patent dispute that lasted over two years with Maxeon Solar Technologies, a company based in Singapore. The settlement grants the Chinese company a license to all of Maxeon’s existing solar back contact cells and related components, as well as those produced outside the United States over the next five years. This agreement does not involve any reverse licensing.

The payment will be made in installments over five years, with an initial payment of about $36 million due in the first year. The majority owner of Maxeon is a major Chinese silicon wafer producer. Following the announcement, the Chinese solar company’s shares in Shanghai skyrocketed by the daily trading limit to close at roughly $2.17 per share. Its parent company’s shares also rose similarly in Shenzhen.

The legal dispute started in November 2023, when Maxeon filed lawsuits in European jurisdictions including Germany, the Netherlands, and Luxembourg’s Unified Patent Court, aiming to curb the sale of the Chinese company’s solar cells in Europe. Maxeon holds critical patents in high-efficiency solar cell technology, particularly related to back contact (BC) technology, which constitutes a significant segment of advanced solar manufacturing. Despite the Chinese firm’s innovative all back contact technology, it faced challenges in bypassing Maxeon’s fundamental BC patents.

Both companies will now withdraw all ongoing or pending legal actions related to the licensed patents and products. The Chinese company’s partner based in Tianjin expressed confidence that the deal will enable collaboration with industry partners to develop a shared BC battery technology ecosystem and strengthen their market presence. The Chinese solar firm believes this settlement will create a more stable patent protection framework for their BC battery technology, reducing long-term litigation costs and promoting smoother sales in global markets.