Adeia Inc. (Nasdaq: ADEA), a technology licensing firm, has initiated a major legal battle against Advanced Micro Devices, Inc. (AMD), alleging that the chip giant has infringed on ten of its foundational semiconductor patents. The lawsuits, filed in the U.S. District Court for the Western District of Texas on November 3, 2025, target core technologies used in AMD’s high-performance processors, including its critically acclaimed 3D V-Cache products.
The core of the dispute revolves around two key areas of semiconductor innovation:
- Hybrid Bonding Technology: Seven patents cover this advanced packaging method, which is essential for the vertical stacking of cache memory in AMD’s Ryzen X3D and server chips.
- Advanced Process Node Technology: Three patents relate to the underlying manufacturing processes used to build modern, high-density silicon.
Adeia’s Reputation as a “Patent Troll”
However, Adeia is considered by many to be what is commonly known as a “patent troll”—a company that registers a large number of patents not for innovation, but to seek licensing fees or settlements through litigation. Adeia asserts that AMD’s success as a market leader is partially built upon the unauthorised use of its patented innovations. The company claims it pursued a licensing agreement before resorting to litigation.
These companies typically do not use their patents to create new products. Instead, they often acquire patents from struggling businesses to make a profit through lawsuits or settlements. Adeia, and its predecessor companies like Tessera, have a history of monetising its IP primarily through licensing and litigation, leading many in the industry to label it a Non-Practising Entity (NPE), or more colloquially, a “patent troll.”
The Patents May Be More Related to TSMC’s Manufacturing Processes
In an official statement, Paul E. Davis, CEO of Adeia, was direct about the company’s motivation:
“Earlier today, Adeia took legal action against AMD to protect our intellectual property rights and the investments we have made in our foundational semiconductor technologies. For years, AMD’s products have incorporated and made extensive use of Adeia’s patented semiconductor innovations, which have greatly contributed to their success as a market leader.”
The lawsuit is framed as a necessary measure to defend Adeia’s extensive IP portfolio, which the company claims comprises more than 13,000 worldwide patent assets.
Davis reiterated: “While we continue to be open to reaching a fair and reasonable arrangement that reflects the value of our intellectual property, we remain fully prepared to pursue resolution of this matter through the courts to safeguard our rights and firmly believe in our ability to achieve a successful outcome.”
Patent Troll Controversy
In this case, the patents in question appear to be more closely linked to technologies used by TSMC, the company responsible for manufacturing AMD’s chips using memory bonding and advanced process nodes. Despite this, Adeia has chosen to sue AMD—possibly hoping for a quick financial settlement instead of engaging in a lengthy court battle.
The suit itself has already had a significant effect on Adeia’s financial outlook. The company revised its full-year 2025 revenue guidance downward, stating that the anticipated licensing agreement with AMD is now unlikely to close in the fourth quarter as previously hoped. This highlights that the lawsuit is as much about securing a major financial license as it is about IP defence.
What Happens Next?
After all, AMD’s 3D V-Cache technology, found in processors such as the Ryzen 7 9800X3D, is one of its most distinctive features. The company may prefer to pay Adeia to avoid legal complications. Interestingly, this 3D technology has been on the market for over three years, and Adeia had not taken legal action until now. The company has previously used similar tactics against other tech firms, reaching financial settlements with companies like NVIDIA.
The most likely outcome of this complex case remains a substantial financial settlement, with AMD potentially opting to pay licensing fees to avoid a lengthy and distracting court battle that could create uncertainty around its flagship 3D V-Cache products.
Tell me More!
We actually covered some of these technologies in our recent features, which you can read here, or watch in the video below.
