Everspin Technologies Faces Legal Challenge Over Core Chip Patents

Everspin US30041T1043

Everspin Technologies, a manufacturer of specialized memory solutions, is now engaged in a legal defense after competitor Avalanche Technology filed a patent infringement lawsuit. The complaint, which could lead to significant financial damages and a potential import ban on key products, arrives as the market anticipates the company's upcoming quarterly earnings report.

Avalanche Technology initiated the lawsuit in late January, alleging that Everspin's Spin-Transfer Torque MRAM (STT-MRAM) technology violates four specific U.S. patents. In a consequential parallel move, Avalanche has also petitioned the U.S. International Trade Commission (ITC), seeking an investigation and a possible order to block imports of the contested Everspin chips and related products into the United States.

Everspin has stated it intends to defend itself vigorously against the allegations. For investors, a critical detail is the lawsuit's scope: it explicitly excludes Everspin's Toggle-MRAM products and its sensor units. This means a substantial portion of the company's portfolio remains unaffected by this immediate legal risk.

Strategic Deals and Forthcoming Financials

The timing of the lawsuit places it just ahead of a period of heightened scrutiny for Everspin. The company is scheduled to release its financial results for the fourth quarter of 2025, with expectations pointing to a date around February 25 or within the first week of March. These figures will provide insight into the stability of its operations following a second-quarter 2025 revenue report of $13.2 million.

Despite the legal headwinds, Everspin has recently secured strategic agreements. One notable contract is with Purdue University, valued at up to $10.5 million, for intellectual property and foundry services. Additional collaborations with partners like Lattice Semiconductor and Quintauris in the automotive and aerospace sectors are aimed at strengthening its market position.

Growth Trajectory Amidst Sector Competition

The broader market environment for MRAM solutions continues to show robust growth potential, even as this legal dispute unfolds. Industry projections estimate the sector will expand from approximately $912 million in 2025 to over $4.7 billion by 2035. This represents a compound annual growth rate of about 18%, fueling intense competition for market share, particularly in industrial and aerospace applications.

The company's leadership remains active, as demonstrated on February 4 when its Chairman and CEO exercised stock options. Market participants are now looking ahead to an analyst call expected on February 26, which should offer further clarity on both the operational performance and the progression of the legal case. The central question remains whether Everspin can maintain its competitive stance in this high-growth sector while navigating the patent dispute.